AUD/USD rallies remain tepid – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bullish attempts in the Aussie Dollar should remain tepid for the time being.

Key Quotes

“AUD/USD has sold off to the base of its short term down channel at .7537. There is also a 13 count on the 240 minute chart and we would allow for a near term rebound here but anticipate that the rebound will remain tepid”.

“It is under overall pressure following the erosion of the 2016-2018 uptrend. Below .7538 lies the .7501 December 2017 low initially and ultimately the 2001-2018 uptrend at .7142”.

“The market recently saw complete rejection of its 200 day ma at .7808 last week. This resistance is reinforced by the top of the channel at .7796 and the 38.2% retracement at .7831, all of which suggests that the market has topped at .7813”.