As the US dollar corrects lower in the short term, the AUD/USD has been extending its gains, approaching 0.76. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has a bearish stance as long as the pair trades below 0.7675.
“The AUD/USD is experiencing some profit taking in the short term. We terminated our short positions yesterday as a precaution because the new bottom was not confirmed by the RSI and Friday’s price action marked a significant day reversal.”
“We’d expect a recovery to 0.7646/70, the low from June 3rd.”
“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 0.7586 provide first resistance.”/n
