AUD/USD to extend its recovery towards the 0.7646/70 region – Commerzbank

AUD/USD has been extending its gains, nearing 0.76, as the US dollar is correcting lower in the near-term. Nonetheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, retains a negative bias while the pair trades below the 0.7675 level.

Key day reversal triggers profit taking

“AUD/USD is seeing some near-term profit taking. Note that the new low was not confirmed by the RSI and that Friday's price action constituted a key day reversal – as a precaution we exited all short positions yesterday.” 

“We would allow for a recovery to 0.7646/70, the 3rd June low.”

“Below 0.7443 (Fridays low), the September high can be spotted at 0.7413 and the mid-September and early November highs at 0.7346/40.” 

“The outlook is negative while capped by the 4th May low at 0.7675.”

“Initial resistance is the 25th June high at 0.7616 and the 20-day ma at 0.7586.”