AUD/USD rebounds to three-month high

<p>AUD/USD (daily chart shown below) has spent the past two weeks rebounding from its long-term lows, and has just risen above key resistance around the […]</p>

AUD/USD (daily chart shown below) has spent the past two weeks rebounding from its long-term lows, and has just risen above key resistance around the 0.8025 level, establishing a three-month high in the process.

Earlier this month, the currency pair had plunged 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.

2015-04-29-AUDUSD daily chart

 

The current rise has been the sharpest and most substantial rebound that AUD/USD has seen for the past year.

Any further recovery for the currency pair should target nearby resistance around the key 0.8100 level. In the event of a further rise above 0.8100, the currency pair should be limited by major resistance around 0.8300.

To the downside, on any resumption of AUD/USD’s long-standing bearish stance, the key support target remains at 0.7500 for a potential extension of the downtrend.

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