AUD/USD continues decline towards multi-year lows

<p>AUD/USD (daily chart shown below) has continued to descend towards its January multi-year low of 0.8660. Friday’s price action saw the currency pair drop to […]</p>

AUD/USD (daily chart shown below) has continued to descend towards its January multi-year low of 0.8660. Friday’s price action saw the currency pair drop to a new seven-month low.

For the past three weeks, extreme US dollar strength has prompted AUD/USD to trade within an exceptionally steep, nearly continuous decline.

This decline, which sharply interrupted a prolonged trading range from April to early September, has targeted and subsequently broken down below several major support levels, including 0.9200, 0.9000, and most recently, the 0.8850 level.
AUD/USD technical chart 26.09.14

 

The 50-day moving average has also just re-crossed below the 200-day moving average this week, a significant technical event that has not occurred since March of 2013.

AUD/USD’s steep bearish momentum of the past three weeks appears poised to continue, at least for the short-term. Below the noted downside target at the January multi-year low of 0.8660, further key support targets reside around 0.8600 and then 0.8300.

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