AUD/USD attempts rise from depths

<p>AUD/USD (daily chart shown below) has wallowed near recent long-term lows as it continues to attempt a rise from its depths. Currently near the top […]</p>

AUD/USD (daily chart shown below) has wallowed near recent long-term lows as it continues to attempt a rise from its depths.

Currently near the top of a tight pennant consolidation pattern that has been in place for the past three weeks, the currency pair has risen only modestly off its new five-year low of 0.7625 that was hit in early February.

That low was almost re-tested last week when price action once again fell below 0.7700 support to hit an intermediate low of 0.7643.

AUD/USD daily chart

Now in consolidation just off those lows, AUD/USD continues to be pressured significantly to the downside and could soon be poised to continue the steep, five-month downtrend that saw price drop from around the 0.9400 area in September of last year down to the noted 0.7625 low in early February.

While a continued relief rebound could prompt a further rise for the embattled currency pair, any sustained break below 0.7700 support and the current pennant consolidation pattern could prompt a breakdown to new lows towards the 0.7500 and 0.7300 target levels.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.