The Australian dollar is under pressure along the other commodity currencies. What’s next? Here is the view from NAB:
Here is their view, courtesy of eFXnews:
NAB FX Technical Strategy notes that AUD/USD price achieved our downside target at 0.7150/00 in late December before launching an impulsive uptrend in January.
However, NAB notes that this 2017 uptrend has stumbled below the broken LT uptrend channel (0.7900/20) which maintains the MT downtrend bias, and highlights that repeated failures above 0.77 in 2017 confirm that resistance up to 0.7900/20 is likely to remain a firm obstacle.
“Current price structure and bearish MT momentum bias maintain downward pressure and target a return to 1 year range lows at 0.7150/00,” NAB argues.
AUD/USD is trading circa 0.7355 as of writing.
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