AUD/USD heads back down towards multi-year lows
James Chen November 19, 2014 7:48 PM
<p>AUD/USD (daily chart shown below) has given back much of the modest gains made during the first half of November, when the currency pair rebounded […]</p>
AUD/USD (daily chart shown below) has given back much of the modest gains made during the first half of November, when the currency pair rebounded from a new four-year low.
Since early September, AUD/USD has been trading within a strong bearish trend, particularly during September’s month-long plunge. After that precipitous drop, price action has been moving in more of a consolidation, but with continued downside pressure.
Early November saw a swift breakdown below a conspicuous inverted pennant pattern, which went on to hit and dip below the 0.8600 downside support target before establishing a new four-year low around 0.8540.
The rebound from that low rose to a high around 0.8795 early this week, slightly above the key 50-day moving average, before dropping back down once again towards its lows.
AUD/USD continues to trade within both a long-term and short-term bearish trend. With US dollar strength continuing to exert itself against the major currencies, the trend bias for AUD/USD currently remains bearish.
With any further breakdown below the noted 0.8600 level and multi-year low, the next major downside support target resides around the 0.8300 level.
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