AUD/USD scope for a sell-off to 0.7520/0.7450 – Commerzbank

The Aussie Dollar risks a potential test of the 0.7520/0.7450 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The market sold off aggressively towards the end of last week and seeing a small rebound currently. The speed of the decline has increased the likelihood of a deeper sell off towards .7520 and possibly .7450 (the 38.2% and 50% retracements). Intraday rallies will remain directly offered below .7657 the 20 day ma. Intraday Elliott waves counts are negative”.

“The market is failing ahead of the .7778/.7850 2016 highs and the 38.2% retracement”.

“Above .7850 would target the 200 month ma at .7939”.