AUD/USD losing upside momentum – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, has noted the recent upside in the Aussie Dollar seems to have run out of steam above 0.7600.

Key Quotes

“AUD/USD’s new high of .7608 was not been confirmed by the daily RSI – this has diverged and reflects a loss of upside momentum. Currently the market’s dip lower is indicated to terminate circa .7505/.7435. We suspect that prices will need to go sub 7400, the 55 day ma, to alleviate upside pressure and trigger losses to .7312/00 then .7161/64, the recent lows”.

“Above the market lies the .7648 2013-2016 channel (where it should struggle). Only above .7648 will negate our negative bias and introduce scope to the .7778/.7850 2016 highs and the 38.2% retracement”.