AUD/USD dips to new five-year low
James Chen April 2, 2015 7:16 PM
<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.
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.
GAIN Capital UK Limited (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.