AUD/USD pulls back after recovery attempt
James Chen May 11, 2015 7:23 PM
<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.
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.
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