AUD/USD on the daily chart has tentatively paused in its free fall of the past month around major support in the 0.9400 price region.
This swift decline to key support has just established a 19-month low for the pair, as the last time the exchange rate dropped to the current depths was in October 2011. The recent plunge began in earnest in early May when the pair broke down below a major trading range between 1.0150 and 1.0600. This breakdown led to a drop below parity (1.0000) and then successively lower support levels within a short period of time. A minor bullish correction hit a high of 0.9790 early last week, but the price quickly continued the downtrend with an inverted flag pattern breakdown to hit the current lows around 0.9400 support. The strong bearishness is not showing signs of abating. Key downside targets on a breakdown below 0.9400 reside around 0.9200 and then 0.9000.
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