In light of the recent sharp pullback in spot, the 0.7310 area is now exposed, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“AUD/USD has sold off aggressively and the .7310/15 recent lows are exposed. The intraday Elliott wave count is negative and we would allow for a retest of the .7315/10 recent lows. Below .7315/10 the market is capable of a slide to the 2001-2018 uptrend line at .7176”.
“Above the 55 day ma at .7480 would allow for a recovery to the downtrend at .7550”.
“Above the downtrend would see a challenge of the .7676 June high and the .7676 200 day ma”.