July 08, 2013 – AUD/USD (daily chart) has displayed a clear and dramatic bearish trend since the high near 1.0600 resistance in mid-April. The steep plunge that has occurred since then has broken down below several key prior support levels after the pivotal breakdowns below 1.0150 and parity (1.0000) in May. With only minor upside corrections during the course of the 3-month plummet, the currency pair has just approached major support around the 0.9000 figure last week, establishing a new 34-month low in the process. Since then, the pair has stalled and retraced slightly to the upside, but the directional bias continues to weigh strongly to the downside. The primary support level to watch currently remains at the 0.9000 figure, with a breakdown below it targeting further downside objectives around 0.8850 and 0.8600.
James Chen, CMT
Chief Technical Strategist
City Index Group
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