AUD/USD continues to be weighed down
James Chen March 20, 2015 6:40 PM
<p>AUD/USD (daily chart shown below) has once again resumed a generally bearish stance after short-lived gains due to the US dollar reaction to Wednesday’s Fed […]</p>
AUD/USD (daily chart shown below) has once again resumed a generally bearish stance after short-lived gains due to the US dollar reaction to Wednesday’s Fed meeting quickly dissipated.
Wednesday’s spike in the currency pair represented a sharp drop in the value of the US dollar that was quickly corrected by the next trading day.
Prior to Wednesday’s spike, the currency pair had reached a new 5-year low of 0.7560 last week and had been on a clear course towards its next downside support target around 0.7500. That low was in the context of a prevailing downtrend that extends back more than six months to September’s 0.9400-area high.
Despite this week’s AUD/USD spike as a result of the US dollar pullback, the currency pair continues to be weighed down within its currently entrenched bearish trend.
The noted 0.7500 level continues to be the next downside target, followed by a further bearish support objective at the 0.7300 level.
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