The AUD/USD pair had a volatile yet negative session on Tuesday, as we continue to see a lot of volatility in this market.

However, this market does look as if it is ready to continue going lower, and a break down below the bottom of the candle for the session on Tuesday would be reason enough to start going short.

We have no interest in buying the Australian dollar, there is far too much in the way of resistance above to make it worthwhile.

Ultimately, you will have to pay attention to the gold markets as they can dictate where the Australian dollar goes next.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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