AUD/USD: Consolidation ahead of a slump towards 200-DMA at 0.6774 – Commerzbank

AUD/USD allows for a minor rebound on Monday ahead of as slide to the 200-day ma at 0.6774, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports. In fact, the aussie is currently trading at 0.7050, up 0.30% on the day, after falling by nearly 0.30% on Friday to 0.7006 – its sixth straight consecutive decline. 

Key quotes

“AUD/USD sold off sharply last week and starts this week still under pressure and we look for a slide to the 0.6964, the 23.6% retracement. There is scope for this to extend towards the 200-day ma, the February high and mid-June low at 0.6778/74, which is expected to hold the initial test.”

“Currently, intraday Elliott wave counts are suggesting that rallies are likely to remain capped by 0.7135 level and contained by the 0.7290 minor resistance line.”