AUD/USD stays downside corrective – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pullback in AUD/USD remains corrective in the near term.

Key Quotes

“AUD/USD remains downside corrective. We have TD resistance at .8097/.8100 and divergence of the daily RSI and the market is viewed as downside corrective near term. However dips lower should remain well supported by .7874/.7836 the April 2016 high. While above the uptrend at .7741 we will assume it is capable of further gains longer term”.

“Above .8100 targets the .8162/66 May 2015 peak and 50% retracement and this is capable of holding the initial test. Above here lies the .8295 January 2015 high”.

“Longer term outlook is positive. The market has broken higher from a large triangle formation that targets eventually .8715 (one year + target)”.