AUD/USD scope for a visit to 0.7568/0.7490 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair risks a test of the 0.7568/0.7490 band.

Key Quotes

“AUD/USD charted an inside day yesterday – these usually reflect a loss of upside momentum and we notice that the Elliott count on the daily chart is pointing to a .7568/.7490 retracement ahead of another upside attempt. Last week, the market eroded the 2013-2017 downtrend and cleared the .7645 Fibo resistance and in doing so has introduced scope to the .7778/.7850 2016 highs and the 38.2% retracement. Directly above here lies at .7930. Very near term we would allow for a dip to .7470/.7490 ahead of further gains”.

“We suspect that prices will need to go sub 7424, the 55 day ma, to alleviate upside pressure and trigger losses to .7312/00 then .7161/64, the recent lows”.