The AUDUSD pair fell during the course of the session on Wednesday, testing the 0.70 level for support.

We ultimately formed a hammer here, so we feel that a break above the top of the hammer is a buying opportunity, but for short-term trades only.

The 0.72 level will more than likely offer a bit of a ceiling in this marketplace as the downtrend is most certainly significant and has been brutal. Commodities continue to sell off, and Asia slows down, both of which are really negative signs for the Australian dollar and the economy.

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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