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.

2015-03-30-AUDUSD

 

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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