AUD/USD could slip back to 0.7766 – Commerzbank

In opinion of Axel Rudolph, Senior Analyst at Commerzbank, the Aussie Dollar could depreciate to the 0.7760 area vs. the greenback.

Key Quotes

“AUD/USD’s upward correction probably failed below the 55 day moving average at .7910 at last week’s .7896 high. A slide back to the five month support line at .7766 should now be seen”.

“Directly below the next lower .7734 current October low lies the 200 day moving average at .7686. Failure at the still lower .7680 upper triangle line would put the 55 week ma at .7631 and the 2016-2017 uptrend line at .7450 back on the map”.

“Above last week’s high at .7896 sits the 61.8% Fibonacci retracement at .7975 which should cap, if reached”.

“The longer term outlook is positive. The cross has broken higher from a large triangle formation that targets eventually .8715 (one year + target). This still remains viable while above .7682”.