AUD USD attempts rise from depths

AUD/USD (daily chart shown below) has wallowed near recent long-term lows as it continues to attempt a rise from its depths.

Currently near the top of a tight pennant consolidation pattern that has been in place for the past three weeks, the currency pair has risen only modestly off its new five-year low of 0.7625 that was hit in early February.

That low was almost re-tested last week when price action once again fell below 0.7700 support to hit an intermediate low of 0.7643.

Now in consolidation just off those lows, AUD/USD continues to be pressured significantly to the downside and could soon be poised to continue the steep, five-month downtrend that saw price drop from around the 0.9400 area in September of last year down to the noted 0.7625 low in early February.

While a continued relief rebound could prompt a further rise for the embattled currency pair, any sustained break below 0.7700 support and the current pennant consolidation pattern could prompt a breakdown to new lows towards the 0.7500 and 0.7300 target levels.

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