AUD/USD upside bias mitigated below 0.7380 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted AUD/USD should keep its positive bias while above 0.7380.

Key Quotes

“AUD/USD charted an inside day on Friday to leave our view unchanged. Last week reached its 200 day ma and is approaching the .7523 December high, we have exited our long positions as we suspect that this may hold the initial test. Currently the market will have to go sub .7380 to alleviate immediate upside pressure and trigger a slide back to the .7312/00 then .7161/64”.

“Above .7525 we would allow for the .7648 2013-2016 channel (where it should fail) . Even this move will remain within the realms of a correction only. We view AUD/USD as having topped longer term and maintain a bearish bias”.