The Australian dollar was hit by the gloomy mood and the drop of oil prices. What’s next?
Here is their view, courtesy of eFXdata:
NAB discusses AUD/USD technical outlook and maintains a bullish short- and medium-term bias, while looking for a monthly close above 0.7213 to confirm a positive long-term trend shift.
“The weekly close three weeks ago completed a bullish multi-week candle pattern (tower bottom) while breaking and closing above the 2018 downtrend channel. A likely MT bottom confirmed. The recent break above the last major correction high at 0.7315 confirms damage to the MT downtrend structure,” NAB notes.
“While LT momentum is yet to confirm a positive trend shift, the first confirmation of reversal may be triggered upon a November month end close above 0.7213. This will confirm that our three-month target at 0.7450 is conservative,” NAB adds.
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