AUD/USD: Buy the dips near 0.7610/0.7580? - SocGen

In its latest client note, analysts at Societe Generale (SocGen) provided key technical levels for trading the AUD/USD pair in the near-term.

Key Quotes:

“AUD/USD has recently tested a projection at 0.7650/30, also the 76.4% retracement from last December and the 38.2% retracement from 2016. It is worth noting that since 2016, the corrections in the pair tend to bottom out near the 76.4% of previous up moves (which is 0.7650 currently). With weekly and daily indicators near support, 0.7650/30 and more importantly the weekly channel at 0.7610/0.7580 should be near-term support levels.

Only if 0.7610/0.7580 breaks, AUD/USD will then head towards the key support near 0.75/0.7477, the 50% retracement. This will be a decisive level for a much deeper down move. Shorter term, the pair has formed a daily bullish engulfing denoting a rebound is likely. Holding above 0.7650/30, the pair should head towards 0.7760, the 23.6% retracement from January with next resistance located at the daily descending trend at 0.7830.”