AUD/USD correction lower could extend to the 0.6865/55 area – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research, noted the leg lower in AUD/USD could test the 0.6865/55 band.

Key Quotes

“AUD/USD sold off last week from a very tough band of resistance, namely .7065/8. This is the location of the 200 day ma and the 8 month downtrend. The market has eroded the 55 day ma at .6955, and near term uptrend and hence starts this week on the defensive”.

“We look for losses to the support at .6865/55 the 17th May low and 2019 uptrend”.

“This protects the mid June low at .6832. Below .6832 will target the .6738 January 2019 low and .6725, the 2016-2019 support line (connects the lows)”.