Posted on February 12, 2015 by the XM Investment Research Desk at 7:46 am GMT
AUDUSD plunged down to 0.7642 on Thursday, approaching close to the 5-1/2 year low of 0.7625 that was reached on February 3. A break below this would open the way towards 0.7500. To the upside the market is capped at 0.7950 – the 61.8% Fibonacci retracement of the upleg from 0.6008 (Oct 2008 low) to 1.1078 (Sept 2011 high).
The overall trend remains bearish as the market has been making lower peaks and lower troughs since the September 2014 high of 0.9400. Prices are below the Ichimoku cloud and the RSI is in bearish territory – highlighting the underlying bearish bias.