AUD/USD resumes push towards five-year lows
James Chen January 12, 2015 7:33 PM
<p>January 12, 2015 – AUD/USD (daily chart shown below) has continued to display a strong bearish bias after rising modestly off the five-year low of around […]</p>
January 12, 2015 – AUD/USD (daily chart shown below) has continued to display a strong bearish bias after rising modestly off the five-year low of around 0.8030 that it hit last week.
The prevailing downtrend for AUD/USD has essentially been in place since April 2013. But the most recent leg of this trend began just a few months ago in early September last year, when the currency pair broke down below a key consolidation.
The trend accelerated towards the end of last year and the beginning of 2015, as lower long-term lows were progressively hit. Downside support targets that were reached and breached included 0.8600, 0.8300, and most recently, 0.8100.
These sharp declines culminated in the currency pair hitting the noted low around 0.8030 last week, which was previously hit in the latter half of 2009, before a slight relief rally towards the end of last week.
Monday’s price action has shown a significant decline on this minor rally, as AUD/USD makes its way back down towards its long-term lows once again.
With any continuation of the entrenched downtrend, and a subsequent break below the 0.8000 psychological support level, the next major downside target resides around the 0.7700 level.
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