AUD/USD top in place above 0.7500? – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the Aussie dollar could have placed an interim top above the 0.7500 handle.

Key Quotes

“AUD/USD remains on the defensive following the failure last week at the .7469/91 zone, this is the 50% retracement and the 55 day ma”.

“We continue to suspect that the market has charted an interim peak at .7505. However a move back below the .7381 October 2015 high will be needed to cast attention back to the 200 day ma at .7270”.

“Above .7505 will see a deeper retracement to .7572 and potentially .7688, the 78.6% retracement of the sell off from April (not favoured). However both intraday Elliott wave counts are positive and for now we will partially exit our short positions as a precaution”.