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2013-05-16-AUDUSD

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

 

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