The AUDUSD pair fell hard during the course of the day on Tuesday, showing the 0.88 level as been resistance.

Because of this, it appears that the market is going to try to go down to the 0.8650 level.

That area is significant support, and as a result if we get below there we would be massive sellers with the Australian dollar continuing to suffer in general.

The gold markets certainly are not helping the Aussie as far as demand is concerned either, so quite frankly we are “sell only” when it comes to this marketplace.

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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