AUD/USD could attempt a bounce near term – Commerzbank

Following the recent decline, a squeeze higher in the Aussie Dollar is not ruled out, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD is under overall pressure following the erosion of the 2016-2018 uptrend. The sell off has reached the .7501 December 2017 low and has registered a close below here. We note that the low has been accompanied by a divergence of the daily RSI and we would allow for a small bounce. Rallies should ideally remain capped by the .7643 end of March low. Longer term we look for a move to the 2001- 2018 uptrend at .7142”.

“The market saw complete rejection of its 200 day ma at .7801 recently. This resistance is reinforced by the top of the channel at .7776 and the 38.2% retracement at .7831, all of which suggests that the market has topped at .7813”.