AUD/USD rebounds to three-month high
James Chen April 29, 2015 7:28 PM
<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.
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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