AUD/USD could slip back towards 0.7536 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, recent price action in AUD/USD opens the door for a potential test of the 0.7530 area.

Key Quotes

“The currency pair charted an inside day yesterday to leave our outlook unchanged. The market last week saw a fairly emphatic rejection from the .7731 September highs (it charted an outside day to the downside). We would allow for further slippage to the five month support line at .7536 and would exit remaining shorts at .7575 (we note the 13 count on the 60 minute chart)”.

“Above .7730/60 would introduce scope to the .7836 April high (not favoured)”.

“Below the 5 month support line lies the 2016 uptrend line at .7515. Further down lurk the September low at .7443 and the 200 day moving average at .7463. This remains a critical break down point to the .7146 May low”.