AUD/USD: Underlying support in focus – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the AUD/USD pair last week saw initial rejection from just ahead of .7200 and is now weighing on the downside very near term.

Key Quotes

“It has eroded the .7055/12th Feb low, and attention has reverted to .7022/15 (50% retracement) and possibly .6950 Rallies will find initial resistance at .7127 (55 day ma and .7207 and are likely to remain capped by the .7245 200 day ma.”

“Price action in January was exhaustive – the market charted a hammer (reversal).”