AUD/USD stays neutral to positive – Commerzbank

AUD/USD’s perspective remains on the neutral side for the time being, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The currency pair has sold off to the 2017 support line at .7593 and is bouncing off here. The intraday Elliott wave counts are conflicting but we suspect that the .7593 support line will hold. Recovery from here would imply a retest of the .7740/78 resistance area (the February as well as November 8 th highs). Failure here will target the .7549 200 day ma”.

“Should a rise as well as daily chart close above the .7778 level be seen, the April 2016 high at .7836 would be in focus. The market remains capped by the .7778/.7850 2016 highs and the 38.2% retracement, but it is possible that it is base building”.