AUD/USD could grind lower to the 0.7780 area – Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, believes the Aussie Dollar could come down to test the 0.7780 area.

Key Quotes

“AUD/USD’s upward correction probably failed below the 55 day moving average at .7906 at its recent .7896 high. A slide back to the five month support line at .7778 should still be seen”.

“Directly below the next lower .7734 current October low lies the 200 day moving average at .7691. Failure at the still lower .7680 upper triangle line would put the 55 week ma at .7635 and the 2016-2017 uptrend line at .7457 back on the map”.

“Above last week’s high at .7896 sits the 61.8% Fibonacci retracement at .7975 which should cap, if reached”.

“The cross has broken higher from a large triangle formation that targets eventually .8715 (one year + target). This still remains viable while above .7682”.