May 24, 2013 – AUD/USD (daily chart) has consolidated after its swift decline to major support around the 0.9650 price region, retesting the lows that were last hit in early June of 2012. This plunge to support effectively originated near the 1.0600 resistance high in early April and has broken down successively below key prior support levels, including the 1.0150 trading range support and then parity (1.0000). In the process, the currency pair has established close to a one-year low. The trend bias for AUD/USD continues to lean strongly to the downside. With key upside resistance currently residing around the 0.9850 price region, downside support targets on a continuation of the current downtrend reside around 0.9400 and then 0.9200.
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.
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