The AUDUSD pair fell during the course of the day on Thursday, breaking below the 0.88 support level.

With that, it appears of the market is ready to go much lower, probably heading to the 0.85 level first.

We have no interest in buying this market now, and we believe that the Australian dollar will continue to get punished as commodity markets are getting hurt.

However, we recognize that a bounce could be coming, and we have no interest in buying unless of course we get back above the 0.95 handle.

With this, we are very bearish.

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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