AUD/USD could slip back to 0.7595/15 – Commerzbank

There is scope for the Aussie Dollar to retreat to the 0.7595/15 band vs. the greenback, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“No change, the daily RSI has diverged and the near term risk has shifted to the downside. The Elliott count on the daily chart is pointing to a .7595/15 retracement ahead of another upside attempt and we remain unable to rule out slippage into this band. Initial support is the 20 day ma at .7649”.

“Last week, the market eroded the 2013-2017 downtrend and cleared the .7645 Fibo resistance and in doing so has introduced scope to the .7778/.7850 2016 highs and the 38.2% retracement. Directly above here lies the 200 month ma at .7930. Very near term we would allow for a dip to .7595/15 ahead of further gains”.