AUD/USD recovery is corrective only – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the current recovery in the pair should be seen as corrective only.

Key Quotes

“AUD/USD has seen a recovery from just ahead of the base of a 17 month converging triangle at .7301 and has been correcting higher. The correction has reached the 240 minute cloud resistance and this has not seen much penetration since the end of March, ideally it will fail here ahead of the .7488 down channel”.

“It is headed to the base of the range offered by the 2016-2017 support line at .7301. This is expected to eventually break down targeting initially .7161 December 2016 low then .7013 the 2001-2017 support line”.