The AUDUSD pair gapped lower at the open on Monday, but as you can see bounced in order to fill that very same gap.

The 0.85 level looks like it’s still continuing to cause bearish pressure, so we believe that ultimately this pair could drop from here.

Nonetheless, the gold markets have been extraordinarily volatile, so be aware the fact that we could have quite a bit of noise in this particular market going forward, but we still believe that the Aussie dollar drops down to the 0.80 handle given enough time.

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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