AUD/USD: Nearby resistance eroded resistance - Commerzbank

In the view of Karen Jones, Analyst at Commerzbank, the AUD/USD pair is on track to test the 0.7998/ 0.8000 78.6% retracement.

Key Quotes:

“AUD/USD has eroded the .7896 mid-October high. The move above here will target the .7998/.8000 78.6% retracement. This is considered to be the last defense for the .8125 September high. It will stay immediately bid while above the .7808 low from last week.“

“The market is bid above the 200 and 55-day ma at .7708/.7676. These guard strong support – namely the 2016-2018 uptrend line and double Fibonacci retracement at .7534/.7475 (50% retracement of the move up from 2016 low AND the 78.6% retracement of the move seen from May 2017).”

“Below .7808 would target the 200 and 55-day ma.“