AUD/USD: Downside corrective, targets the 200-DMA at 0.6773 – Commerzbank

AUD/USD is trading near the 0.7087 daily high, up 0.5% on Friday. Nonetheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the aussie under pressure after eroding the 55-day ma and the five-month uptrend and is targeting the 200-day ma at 0.6773.

Key quotes

“AUD/USD has continued to sell-off sharply following the erosion of the 55-day ma and the five-month uptrend. It is under pressure and we look for a slide to the 0.6964, the 23.6% retracement. There is scope for this to extend towards the 200-day ma, the February high and mid-June low at 0.6778/73, which is expected to hold the initial test.” 

“Currently intraday Elliott wave counts are negative and rallies are likely to remain capped by 0.7135 level and contained by the 0.7303 minor resistance line.”