AUD/USD is ready for another leg lower – Commerzbank

AUD/USD has charted an outside day to the downside. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the aussie to extend its slide towards the 0.7062/0.6991 support zone.

Offered below the four-month downtrend at 0.7400

“AUD/USD charted an outside day to the downside yesterday and we can only assume it is ready for another leg lower.”

“The aussie recently failed at the four-month downtrend at 0.7400 and we will retain a negative bias while capped here.”

“Minor support at 0.7222/20, the 27th August low guards 0.7106, the August low. Key support remains at 0.7062/0.6991. This represents the September and November 2020 lows.” 

“Below 0.6991 would trigger losses to the 50% retracement of the 2020-2021 move at 0.6760.”