AUD/USD: upside scope for a move into the .7740/90 band - Commerzbank

Karen Jones, Analyst at Commerzbank, offers here technical view for the AUD/USD pair's possible movement in the near-term. 

Key quotes:

“AUD/USD is consolidating below the 200 day ma at .7693. While it is possible that this will hold the initial test there remains near term upside scope for a move into the .7740/90 band, where it is likely to fail.”

“The market has recently bounced from its 2016-2017 uptrend which today is located at .7513. A close above the .7669/93 55 and 200 day moving averages will alleviate downside pressure and initiate a deeper recovery.” 

“The market has strong support in this vicinity – namely the 2016-2017 uptrend line and double Fibonacci retracement at .7500-.7475 (50% retracement of the move up from the 2016 low AND the 78.6% retracement of the move seen from May 2017). Below .7475 would trigger a deeper sell off to the .7330 May low.”