The AUDUSD pair initially tried to rally during the course of the session on Monday, but turned back around to form a massive shooting star.

The shooting star of course is a negative sign, and as a result we feel that this market is going to break down rather significantly.

Having said that though, we recognize that the market has seen a little bit of support just below, so it will probably be a situation where we simply sell short-term rallies in order to play short-term trades going forward.

We have no interest whatsoever in buying.

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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