August 1, 2013 – AUD/USD (daily chart) has finally dropped below 0.9000 support, establishing close to a three-year low for the Australian dollar against the greenback, continuing the steep plunge that has been in place since the April high near 1.0600. The current support breakdown occurs after price consolidated in a prolonged triangle pattern for the past month that hit a low right around the 0.9000 support level in mid-July. That triangle was swiftly broken down earlier this week before price dropped further to breach the 0.9000 level yesterday. With the continuation of the strong bearish trend now confirmed, AUD/USD has further key downside objectives to target if price is able to stay under 0.9000. A breakdown below immediate downside support around 0.8850 could lead the way towards major support levels down at 0.8600 and then 0.8300.
James Chen, CMT
Chief Technical Strategist
City Index Group
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