AUD/USD could slip back towards the 0.7940 area – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the Aussie Dollar could correct lower towards the 0.7940 area vs. the buck.

Key Quotes

“AUD/USD’s new high at .8125 has been accompanied by a large divergence of the daily RSI. Directly overhead lies the .8162/66 May 2015 peak and 50% retracement. Above there lies the .8295 January 2015 high. We would allow for a dip back to the uptrend at .7942, near term and have become concerned that the uptrend may not hold”.

“Below the uptrend lies the .7808 current August low, which guards good support at .7748/41. It is where the February and March highs are located and while above here the market will remain bid”.

“The longer term outlook is positive. The cross has broken higher from a large triangle formation that targets eventually .8715 (one year + target)”.