AUD/USD pulls back after recovery attempt

<p>AUD/USD (daily chart shown below) has begun to pull back after having spent much of April attempting a partial recovery from its long-term lows. Early […]</p>

AUD/USD (daily chart shown below) has begun to pull back after having spent much of April attempting a partial recovery from its long-term lows.

Early April saw the currency pair plunge to a new five-year low of 0.7532, just short of hitting its 0.7500 downside target. That low was the latest culmination of a sharp downtrend that had been firmly in place for the previous nine months, since the high around 0.9500 in July of last year.

2015-05-11-AUDUSD daily chart


In contrast, late April saw AUD/USD recover sharply to a three-month high around 0.8075 before quickly retreating and pulling back.

The first part of May has mostly seen a consolidation below this latest high, as the currency pair continues to trade within an overall downtrend despite the noted rebound.

With any sustained trading below 0.7900, AUD/USD should regain its bearish stance to re-target the key 0.7700 support level to the downside. Any renewed rebound should continue to be limited to the upside by the 0.8100 resistance level.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.