AUD/USD could slip back towards 0.7310/12 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot could grind lower to the 0.7310 area.

Key Quotes

“AUD/USD last week saw only a minor erosion of the 38.2% retracement at .7490 and reversed well ahead of the 55 and 200 day ma at 7532/62. We suspect that the near term strength has ended and ideally we look for failure (favoured) and a retest of the .7312/10 mid June low and the 78.6% Fibonacci retracement at .7287/81”.

“Further down lurks the May low at .7146. We view AUD/USD as having topped and eventually expect it to slide back to the .6828 January low. A close below the .7420 support line would add weight to our view”.

“Above .7565 will delay our bearish outlook and allow for .7600 and potentially .7678”.