AUD/USD: consolidating at its 200 day ma - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the AUD/USD pair is bouncing from the 2016-2107 uptrend at .7500, which if broken would introduce scope to the 2000-2017 support line at .7072.

Key quotes:

“AUD/USD continues to hold below the 200 day ma at .7693. While it is possible that this will hold the initial test there remains near term upside scope for a move into the .7740/90 band, where it is likely to fail. The market has recently bounced from its 2016-2017 uptrend which today is located at .7513.”

“A close above the .7676/94 55 and 200 day moving averages will alleviate downside pressure and initiate a deeper recovery.”

“The market has strong support in this vicinity – namely the 2016-2017 uptrend line and double Fibonacci retracement at .7500-.7475 (50% retracement of the move up from the 2016 low AND the 78.6% retracement of the move seen from May 2017). Below .7475 would trigger a deeper sell off to the .7330 May low.”