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Forex Analysis: AUD/USD Hits and Bounces off Range Bottom

2013-05-08-AUDUSD

May 8, 2013 – AUD/USD (daily chart) has dropped down and tentatively bounced off the bottom border of a major horizontal trading range that has been in place for the past ten months. This key trading range support resides right around the 1.0150 price region. The descent to this support level has been in progress since early April, when price began its most recent fall from just under the 1.0600-area upper border of the range.

If the strong current support continues to hold, price could be in the process of beginning yet another bullish leg within the range, with an intermediate upside objective around 1.0350, and then ultimately towards the noted range resistance around 1.0600. If the current 1.0150 support is not able to hold, a breakdown of the range could send the pair down towards parity (1.0000) and below.

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.