Tim Riddell, Research Analyst at Westpac, suggests that despite breaching retracement/support at 0.7480, an interim base appears to be forming off 0.7410-20 for AUD/USD pair, supported by a sound turn in daily momentum
Key Quotes
“The style/scale of rebounds is critical. A close above 0.7650 would temper current bias for limited corrective bounces prior to another leg lower (to 0.7325-50).”
“Weekly
- Weekly momentum has pulled back to levels which defined range support over the past two years. This raises the risk that a potential base may develop
- Despite risk that range affirming may be in play, if near term rebounds falter, price “patterns” could quickly swing towards another/extending slide towards 0.7200.”
“Monthly
Monthly momentum has a more neutral to cautious tone for AUD. Though it should be noted that RSI’s have not yet broken lower, the downside is favoured
A spike to retest the 0.7150-0.7200 area could develop without altering the longer term bias for a continued broad consolidation forming since early 2016.”
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