AUD: Daily close above 0.7440 could break the current downtrend - Westpac

Tim Riddell, Research Analyst at Westpac, explains that daily momentum remains AUD negative, but is reaching low levels and a daily close above 0.7440 could break the current downtrend.

Key Quotes

“0.7330 (50% of past 18-month range) may be holding, but the style of the decline from early May’s 0.7555 high suggests a break of this sport for a test of 0.7210-20.”

“Weekly

• The roll over in momentum after early March highs continues to suggests further slippage towards 0.7100-0.7200 in order to define broad range support
• Despite breaking a longer term rising support line, the current decline is not accelerating and remains within the parameters of range trading slippage”

“Monthly

• Momentum indicators are rolling negative, but from neutral levels. This suggests that a consolidation/broad trading range is forming, rather than an impulsive turn
• AUD rebounds are likely to be limited, defining declining consolidation resistance. Bias for further pullbacks into 2H’17 remains”