AUD/USD could reach 0.7333 – Commerzbank

Following the recent sharp sell-off, the recovery in the Aussie Dollar could visit the 55-day SMA in the 0.7330 region, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD has at last started to correct higher and would allow for recovery to the 55 day ma at .7333. We note that the market has eroded the May and December 2016 lows at .7161/46. It has maintained downside pressure however due to the 13 count, we will not chase this lower, but wait for a rebound to sell into. The move below .7140 opens up the path to .6827 the 2016 low”.

“A negative bias will remain entrenched while below the 55 day ma at .7333”.