May 10, 2013 – AUD/USD (daily chart) has finally broken down the below the long-term trading range between 1.0150 and 1.0600, and has further plunged to hit a low slightly below parity (1.0000). This price event is especially pivotal as the pair has been unable to break down below major previous support at 1.0150 for many months. Currently, price has established a new 10-month low around parity and has opened the way for further potential decline. The broken 1.0150 level should now serve as intermediate resistance within the context of the current bearish momentum. A significant breakdown below parity could move the pair towards further downside support objectives around 0.9875 and 0.9650.
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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