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Forex Analysis: AUD/USD Continues Dramatic Plunge to Establish New


May 16, 2013 – AUD/USD (daily chart) has continued its week-long plunge that initiated on a clean breakdown below the major 1.0150 support level late last week. That move broke the longstanding trading range that had been in place for the previous ten months. Since that breakdown, price has proceeded to breach parity (1.0000) and then hit key support further down around the 0.9850 level yesterday. Currently, price has broken below that level as well, establishing a new 11-month low in the process. The downtrend is currently showing few signs of relenting. With key upside resistance now residing around parity, the next major downside price objectives reside around 0.9650 and then 0.9400, both of which are important prior support/resistance levels.

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.