The AUDUSD pair fell significantly during the course of the session on Tuesday, breaking down to a fresh, new low.

However, the 0.70 level below is a large, round, psychologically significant number.

Because of this, the market will more than likely bounce, but if we broke down below the 0.70 level on a daily close we would be willing to start selling again.

With the selloff that we have seen in the stock markets around the world, and makes sense that the Australian dollar suffered. However, we also believe that we could see just as significant of a bounce in this region.

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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