AUD/USD: Faltering on the resistance - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the AUD/USD pair faltering on the resistance around 0.7740-0.7748 triggered a sharp downward correction.

Key Quotes

“The AUD/USD broke below several major support at 0.7660, while a downward bubble has started to develop in the daily chart. In addition, the weekly stochastic turned bearish once again.”

“Under these conditions, caution will be in order, with an eye on the support at 0.75 (weekly Bollinger moving average). If it gives, this would open the way for a more pronounced decline towards 0.7389 (monthly Bollinger moving average), possibly the supports around 0.730.7317 (weekly parabolic).”