AUD/USD expected to return to 0.7044 – Commerzbank

Despite the ongoing rebound, the Aussie dollar is seen slipping back towards 0.7044, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD is failing at the .7477/91 zone, this is the 50% retracement and the 55 day ma, yesterday it charted a key day reversal – this adds weight to the idea that the market has charted an interim peak at .75035”.

“A move back below the .7381 October 2015 high should cast attention back to the 200 day ma at .7265. Above .7505 will see a deeper retracement to .7572 and potentially .7688, the 78.6% retracement of the sell off from April”.

“Beyond a corrective rebound, we favour losses to the 78.6% retracement at .7044. This remains the last defense for the .6828 January low”.