AUD/USD (daily chart) as of February 7, 2013 has continued to fall within its trading range of 1.0150-1.0600 that has been in place since mid-July of 2012. The current down-move within this range was initiated in January when price re-tested and turned down from key 1.0600 resistance for the fourth time in the past six months. In the process, price has just established an approximate 12-week low. With the potential for further bearishness within the trading range, a move towards the bottom of the range around 1.0150 could be in the making. A further breakdown below 1.0150 support could then lead the way to a move towards parity (1.0000). Conversely, any significant upside potential for the pair would clearly be contingent upon a breakout above exceptionally strong resistance at 1.0600.
James Chen, CMT
Chief Technical Strategist
City Index Group
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