AUD/USD still under pressure below 0.7244 – Commerzbank

The Aussie Dollar is expected to remain under pressure as long as 0.7244 caps, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD is consolidating just below the top of the .7244 2018 channel - while capped here this will leave the market under overall pressure. However the risk has increased that we will see a close above here and we favour a break higher. Why? We are looking for reversal for a number of reasons - we have TD support at .6995 and the large divergence of the daily and weekly RSI”.

“A close above the channel would be required to negate downside pressure and trigger a move to the .7474 9 th July high on the way to the 200 day ma at .7482”.