AUD/USD dips to new five-year low

<p>AUD/USD (daily chart shown below) has dropped on Thursday to hit a new five-year low, just slightly shy of a six-year low. This decline has […]</p>

AUD/USD (daily chart shown below) has dropped on Thursday to hit a new five-year low, just slightly shy of a six-year low. This decline has prompted a tentative dip below the prior low around 0.7560, which was established only three weeks ago.

For more than a week, the currency pair has been in a steep plunge that has given back all of the gains made during the short-lived rebound that occurred around mid-March.

That rebound had pushed AUD/USD just above 0.7900 resistance before quickly reversing into what has since become an exceptionally swift retreat.

2015-04-02-AUDUSD daily chart


This retreat has now prompted a confirmed continuation of the sharp downtrend that has been in place since the September 2014 high near 0.9400.

The major downside target to watch has long been, and continues to be, the key 0.7500 level, which is only slightly below the current trading price as of Thursday morning. Any break below 0.7500, which would further continue the entrenched bearish trend, should go on to target the original 0.7300 price objective.

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