AUD/USD further rangebound expected – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the consolidative theme in AUD/USD is poised to persist as long as 0.7536 holds.

Key Quotes

“The market is once again approaching tough resistance at .7700/60 – this has been the scene of numerous failures since August. We would again allow for failure. The market is under pinned short term by five month uptrend, which today is located at .7558.

“The 2016 uptrend is located at .7536 and a close below here is needed to undermine the range bound trading which has dominated the chart for the past 3 months”.

“Failure here targets the September low at .7443 and the 200 day moving average at .7483. This remains a critical break down point to the .7146 May low”.

“The top of the range is .7731/55, the August and September highs, intraday Elliott wave counts are now contradictory and we revert to neutral. Above .7755 would introduce scope to the .7836 April high and this remains viable. It remains bid while above the five month support line at .7550”.