In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the Aussie Dollar could attempt a rebound in the short-term horizon.
“AUD/USD has seen a minor break to a new low. This has been accompanied by a TD perfected set up and we note TD support at .6995. It is possible that we will see a small rebound near term. The market has recently failed at the 55 day moving average at .7263 and the .7324 2018 channel and remains under pressure. Below .6995/75 targets .6827 the 2016 low”.
“A close above the channel would be required to negate downside pressure and trigger a move to the .7474 9th July high on the way to the 200 day ma at .7569”.