August 23, 2013 – AUD/USD (daily chart) has sustained its slide of the past several days to dip below the key 0.9000 psychological level and approach a resumption of the strong bearish trend that has been in place since the April high near 1.0600. The past several weeks has seen an upside correction that hit a high of 0.9232, but that correction was rather minor and short-lived within the context of the much larger bearish trend. The key downside level to watch continues to be major support at 0.8850, which is not only a strong historical support/resistance level but is also the pivotal long-term low that was hit in early August before the upside correction. A breakdown below 0.8850 would confirm a continuation of the 4-month plunging trend. In this event, a key intermediate support objective to the downside resides around the 0.8600 level.
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.
Share
