AUD/USD still focused on 0.7294 – Commerzbank

AUD/USD keeps targeting the 0.7300 neighbourhood in the medium term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD is approaching its initial downside target – namely the base of a 17 month converging triangle at .7294 - this is a MAJOR break down point for the AUD and we would allow it to hold the initial test, we also note the 13 count on the daily chart and have exited short positions for now. Failure here will trigger losses towards the .7161 December 2016 low”.

“It is headed to the base of the range offered by the 2016-2017 support line at .7294. This is expected to eventually break down targeting initially .7161 December 2016 low then .7013 the 2001-2017 support line”.