AUD/USD - Extension of the recovery likely - Natixis

‘FX Trends Daily’ technical research report from Natixis says the recovery from the AUD/USD pair from the Dec 23 low of 0.7160 is likely to continue further in the coming days.

Technical rationale

The buy signal on the daily indicators, the increase in the daily volatility and the pickup of the weekly stochastic plead for an extension of the recovery in the coming days.

Against this backdrop, the cross should overcome easily 0.7485-0.75 ahead of eyeing 0.7579 (weekly parabolic). The break of the latter would undermine the weekly downside channel, flagging 0.7760 (weekly Bollinger upper band) and the 0.78 threshold as major targets. The supports are located at 0.7444, at 0.74-0.7408, at 0.7340-0.7360, at 0.7294, at 0.7260 and at 0.7189-0.7203.