AUD/USD retreats towards multi-year lows

<p>AUD/USD (daily chart shown below) has retreated from the recent rebound that pushed the currency pair up to a high of 0.7937 last week, slightly […]</p>

AUD/USD (daily chart shown below) has retreated from the recent rebound that pushed the currency pair up to a high of 0.7937 last week, slightly above key 0.7900-area resistance.

Prompted by a significant US dollar dip around mid-March, that AUD/USD rise occurred shortly after a new five-year low of 0.7560 was established more than two weeks ago.

The rebound had broken cleanly above both the 50-day moving average and a key downtrend line extending back to September 2014, the beginning of the most recent bearish run.



The current retreat has now prompted the currency pair to give back most of the gains made during that rebound, and has pressured AUD/USD back down towards the noted multi-year low.

With a strong bearish trend still firmly in place, the currency pair continues to be weighed down and could soon confirm a continuation of the entrenched downtrend.

In that event, the next major support targets below the noted 0.7560 low remain at the original 0.7500 and 0.7300 price objectives.

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