AUD/USD plunges to four-and-a-half-year year low below 0.8300
James Chen December 8, 2014 6:46 PM
<p>AUD/USD (daily chart shown below) has continued its plunge to hit a new four-and-a-half-year low under its 0.8300 downside support target. Not since mid-2010 has […]</p>
AUD/USD (daily chart shown below) has continued its plunge to hit a new four-and-a-half-year low under its 0.8300 downside support target. Not since mid-2010 has the currency pair traded at such depths.
This new multi-year low comes after three full weeks of almost continuous declines in the face of virtually unrelenting US dollar strength.
In early September, AUD/USD resumed its long-term downtrend after a prolonged period of range trading.
Since early September, the currency pair has experienced major downside moves, interrupted by a large bearish pennant consolidation during the month of October.
After breaking down below that pennant pattern, price action hit its 0.8600-area support target, with a further downside support target around the 0.8300 level.
Having just reached down and dipped below this 0.8300 target to begin the current trading week, AUD/USD has clearly confirmed the acute strength of its entrenched downtrend.
With any further bearish momentum below 0.8300, the next major support target to the downside resides around the 0.8100 level. Before that level is potentially hit, however, another upside pullback or consolidation should soon be due.
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