The Australian Dollar is looking for a new direction after escaping the abyss and held above 0.70. What’s next?
Here is their view, courtesy of eFXdata:
NAB discusses AUD/USD technical outlook and flags a scope for a near-term bullish reversal on a daily close above 0.7200/25.
“Series of lower highs / lower lows (MT downtrend structure) has again been confirmed in October with a new 2018 low in October. Bounces in Q3/Q4 have been capped by the 50 day MA and daily cloud base, now at 0.7200/25.
Interim correction has a high risk of testing 0.7200/25 in the coming one to two weeks. A daily close above 0.7200/25 will target a likely test of 0.7315, the break of which threatens the MT downtrend structure,” NAB argues.
“Only a monthly close above 0.7423 would complete a bullish LT reversal pattern, above key MT/LT trend lines and place the LT downtrend on hold,” NAB adds.
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