AUD/USD Hits and Bounces off Range Bottom
James Chen May 8, 2013 5:30 PM
<p>May 8, 2013 – AUD/USD (daily chart) has dropped down and tentatively bounced off the bottom border of a major horizontal trading range that has […]</p>
May 8, 2013 – AUD/USD (daily chart) has dropped down and tentatively bounced off the bottom border of a major horizontal trading range that has been in place for the past ten months. This key trading range support resides right around the 1.0150 price region. The descent to this support level has been in progress since early April, when price began its most recent fall from just under the 1.0600-area upper border of the range.
If the strong current support continues to hold, price could be in the process of beginning yet another bullish leg within the range, with an intermediate upside objective around 1.0350, and then ultimately towards the noted range resistance around 1.0600. If the current 1.0150 support is not able to hold, a breakdown of the range could send the pair down towards parity (1.0000) and below.
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.