May 8, 2013 – AUD/USD (daily chart) has dropped down and tentatively bounced off the bottom border of a major horizontal trading range that has been in place for the past ten months. This key trading range support resides right around the 1.0150 price region. The descent to this support level has been in progress since early April, when price began its most recent fall from just under the 1.0600-area upper border of the range.
If the strong current support continues to hold, price could be in the process of beginning yet another bullish leg within the range, with an intermediate upside objective around 1.0350, and then ultimately towards the noted range resistance around 1.0600. If the current 1.0150 support is not able to hold, a breakdown of the range could send the pair down towards parity (1.0000) and below.
James Chen, CMT
Chief Technical Strategist
City Index Group
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