Home Forex Analysis: AUD/USD Plunges Below 0.90 Support
Forex News Today: Daily Trading News

Forex Analysis: AUD/USD Plunges Below 0.90 Support

2013-08-01-AUDUSD

August 1, 2013 – AUD/USD (daily chart) has finally dropped below 0.9000 support, establishing close to a three-year low for the Australian dollar against the greenback, continuing the steep plunge that has been in place since the April high near 1.0600. The current support breakdown occurs after price consolidated in a prolonged triangle pattern for the past month that hit a low right around the 0.9000 support level in mid-July. That triangle was swiftly broken down earlier this week before price dropped further to breach the 0.9000 level yesterday. With the continuation of the strong bearish trend now confirmed, AUD/USD has further key downside objectives to target if price is able to stay under 0.9000. A breakdown below immediate downside support around 0.8850 could lead the way towards major support levels down at 0.8600 and then 0.8300.

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.