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.
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.