AUD/USD is approaching its 55 week ma hurdle at 0.7860 - Commerzbank

Karen Jones, Analyst at Commerzbank, offers a technical view for the AUD/USD pair and foresee a move towards the 55-week MA stiff resistance near the 0.7860 region.

Key quotes:

“AUD/USD is poised to encounter the 55 week ma at .7860 and we note the TD perfected set up on the daily chart and the 13 count on the 240 minute chart. We look for initial failure here and will attempt small short positions. Above here lies the .7896 13th October high and then .8000/.78.6% retracement.”

“The market is bid above the 200 and 55 day ma at .7699/64. This guards strong support – namely the 2016-2018 uptrend line and double Fibonacci retracement at .7526-.7475 (50% retracement of the move up from the 2016 low AND the 78.6% retracement of the move seen from May 2017).”