AUD/USD: Near-term correction higher is over - Commerzbank

Sandeep Kanihama FXStreet Contributor

Karen Jones, analyst at Commerzbank, points out that the AUD/USD has recently rallied to and failed just ahead of the 55 day ma at .7020 and the April peak at .7069 and they suspect that the near term correction higher is over.

Key Quotes

“We have reinstated short positions as the daily Elliot Elliott wave count is also negative. It should now head lower to initial support at .6941, the 27th May high and .6898, the 30th May low ahead of the .6865 recent lows. A fall and daily chart close below the .6857 78.6% Fibonacci retracement would signal a further bearish phase and target the .6738 December 2019 low.”

“Further up resistance can be spotted at the .7207 February high. A rise above the .7207 late February high would target the December 2018 high at .7394.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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