After a significant day reversal on Friday, the AUD/USD remains under pressure approaching 0.7500. The market will witness profit-taking in the US Dollar, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. This would allow the Australian dollar to stabilize.
“On Friday, the Australian dollar fell to fresh lows for the year. However, it failed to close below the December low, so we’ll allow for some short-term profit-taking.”
“Note that the RSI did not confirm the new low, and Friday’s price movement was a crucial day reversal.”
“The September high is at 0.7413, and the mid-September and early November highs are at 0.7346/40, all below 0.7443 (Friday’s low).”
“The prognosis is negative, with the 4th May low at 0.7675 acting as a ceiling.”
“The 25th June high of 0.7616 and the 20-day moving average of 0.7595 provide first resistance.”/n
