AUD/USD is holding sideways near term and has not overcome any resistance of note and continues to hold above the .6738 January 2019 low as this support is reinforced by .6720, the 2016-2019 support line (connects the lows), according to Karen Jones, analyst at Commerzbank.
Key Quotes
“The market did recently trade through these levels BUT did not CLOSE below here. This move however looks exhaustive and we would allow for some consolidation/correction near term.”
“Rallies will need to regain the .6832 June low as an absolute minimum in order to alleviate immediate downside pressure. This resistance is reinforced at .6865 (mid May low). Above here lies .6924 55 day ma ahead of very tough band of resistance, namely .7036/61. This is the location of the 200 day ma and the 8 month downtrend. Failure at .6720 on a closing basis will suggest ongoing weakness to the 78.6% retracement at .6124 and the 2008 low at .6020.”
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