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Forex Analysis: AUD/USD Hits and Bounces off Range Bottom


May 8, 2013 – AUD/USD (daily chart) has dropped down and tentatively bounced off the bottom border of a major horizontal trading range that has been in place for the past ten months. This key trading range support resides right around the 1.0150 price region. The descent to this support level has been in progress since early April, when price began its most recent fall from just under the 1.0600-area upper border of the range.

If the strong current support continues to hold, price could be in the process of beginning yet another bullish leg within the range, with an intermediate upside objective around 1.0350, and then ultimately towards the noted range resistance around 1.0600. If the current 1.0150 support is not able to hold, a breakdown of the range could send the pair down towards parity (1.0000) and below.

James Chen, CMT
Chief Technical Strategist
City Index Group


Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.

James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.