AUD/USD: Dips to 0.76-0.7610 will be seen as corrective – Natixis

Natixis ‘FX Trends Daily’ note says dips in the AUD/USD to 0.76-0.7610 are likely to be short lived and the spot could test resistance at 0.7754-0.7770 and 0.78-0.7811 levels.

Key points

Upside parallels are still intact on the daily chart, the daily stochastic sounds ready to turn around and the weekly indicators still send buy signals. Against this backdrop, dips towards the supports at 0.76-0.7610 will be seen as corrective and we expect a new round of rallies to an important resistance at 0.7690-0.77 (daily Bollinger upper band), a barrier that has been tested several times since February 2.

The break of this level is required to initiate an extension of the ST upside trend to 0.7754-0.7770 and 0.78-0.7811 (weekly Bollinger upper band and rising trendline). The supports are located at 0.76-0.7610, at 0.7583, at 0.7542 and at 0.7472-0.7497.