AUD/USD: Caution is in order - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that caution is in order for AUD/USD pair given that the support at 0.7593 (monthly Bollinger moving average) has given way and that a descending channel is still in evidence in the daily chart.

Key Quotes

“The deterioration of the weekly technical configuration, marked by a sharp rise in volatility and still downbeat indicators, is also preoccupying.”

“Under these conditions, any rebounds are likely to be limited. Watch out rather for new pullbacks towards 0.7556 (lower band of daily Bollinger) before the supports around 0.75-0.7511 (Fibonacci projections) and around 0.7435-0.7458 (ascending support trendline). The pair could even weaken further towards 0.7385-0.74 (horizontal trendline).”

“Resistance levels are located at 0.7593, around 0.7619-0.7630, at 0.7657/70 and at 0.7730.”