AUD/USD to plummet towards the 0.6760 mark on a break below 0.6991 – Commerzbank

AUD/USD has opened on a firm footing and closes in on the multi-week high it set at 0.7340 on Friday. Nonetheless, while the aussie trades below the resistance line at 0.7361, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, allows for further falls.

Negative bias remains while capped by the 0.7361 downtrend

“AUD/USD crept slowly higher last week, but near-term strength is viewed as corrective. The market recently failed at the four-month downtrend at 0.7361 and we will retain a negative bias while capped here.”

“We look for losses to 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.”