AUD/USD: Pullback is underway in short term, the pair could drift towards 0.73 - SocGen

Analysts at Societe Generale note that the AUD/USD tested the decadal channel support last year, since which it has been evolving within a large base formation in the form of an inverted head and shoulders.

Key Quotes

“The recovery in the pair has been faltering near 0.7730/0.7830, the 23.6% retracement from 2011 highs and the neckline of the aforementioned formation. Short term, a pullback is underway and the pair could drift towards 0.73, which happens to be the lower limit of a broad triangle. This should be a prominent support.”