AUD/USD to tank towards the August low of 0.7106 – Commerzbank

AUD/USD is trading below the 0.7200 level. Attention reverts to the August low at 0.7106 while the aussie should hold above key support at 0.7062/0.6991 to avoid further falls, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. 

Offered below the four-month downtrend at 0.7390

“AUD/USD’s outlook stays negative. The pair recently failed at the four-month downtrend at 0.7390 and we will retain a negative bias while capped here.”

“Initial resistance is the 0.7317 55-day ma.”

“We look for losses to 0.7106, the August low. Key support remains at 0.7062/0.6991. This represents the September and November 2020 lows.”

“Below 0.6991 would trigger losses to the 50% retracement of the 2020-2021 move at 0.6760.”