June 14, 2013 – AUD/USD (daily chart) has made a significant bullish correction within the span of the past week to bump up against the 0.9650 resistance area. The recent downtrend, which has effectively been in place since the April high near 1.0600, has been strong and steep with very little in the way of substantial upside corrections. The current advance could be an exception. Momentum above the 0.9650 area could potentially lead the way to a partial recovery back up towards parity (1.0000). Perhaps more likely, however, the current bullishness should exhaust itself well below parity and turn towards a resumption of the entrenched downtrend. In this event, downside support objectives include a re-test of this week’s 0.9325 low, and then further down towards the 0.9200 and 0.9000 support areas.
James Chen, CMT
Chief Technical Strategist
City Index Group
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