The AUDUSD pair broke higher during the course of the day on Wednesday, clearing the 0.88 level but not clearing the resistance above.

Because of this, we are still suspicious of the Australian dollar, and although we know that gold is on the precipice of making a break out to the upside, we are still not comfortable buying the Aussie until we get above the 0.9050 level, which is quite a bit above current levels.

Ultimately, if we get a nice-looking resistive candle though we are willing to start selling as the downtrend is still in effect.

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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