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Forex Analysis: AUD/USD Plunges to Parity


May 10, 2013 – AUD/USD (daily chart) has finally broken down the below the long-term trading range between 1.0150 and 1.0600, and has further plunged to hit a low slightly below parity (1.0000). This price event is especially pivotal as the pair has been unable to break down below major previous support at 1.0150 for many months. Currently, price has established a new 10-month low around parity and has opened the way for further potential decline. The broken 1.0150 level should now serve as intermediate resistance within the context of the current bearish momentum. A significant breakdown below parity could move the pair towards further downside support objectives around 0.9875 and 0.9650.

James Chen, CMT
Chief Technical Strategist
City Index Group


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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.