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Karen Jones, Team Head FICC Technical Analysis Research, noted the leg lower in AUD/USD could test the 0.6865/55 band.

Key Quotes

AUD/USD sold off last week from a very tough band of resistance, namely .7065/8. This is the location of the 200 day ma and the 8 month downtrend. The market has eroded the 55 day ma at .6955, and near term uptrend and hence starts this week on the defensive”.

“We look for losses to the support at .6865/55 the 17th May low and 2019 uptrend”.

“This protects the mid June low at .6832. Below .6832 will target the .6738 January 2019 low and .6725, the 2016-2019 support line (connects the lows)”.