AUD flirting with the lower end of its two-month trading range - BBH

The Australian dollar is flirting with the lower end of its two-month trading range near $0.7800 and That area could also be the neckline of a double top crated in July near $0.8065 and last month's high near $0.8125, suggests the analysis team at BBH.  

Key Quotes

“A convincing break of the neckline would suggest potential toward $0.7500. That corresponds to the 61.8% retracement of this year's 10-cent rally by the Aussie.  The technical indicators are getting extended, and while a break of the $0.7800 may be likely, sharp losses are not.  We see initial technical support near $0.7760.   That said the weekly technical indicators favor the Aussie's downside in the medium-term.”