AUD/USD needs to hold above 0.7062/0.6991 to avoid further losses – Commerzbank

AUD/USD eases back below 0.7300. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, watches signs of stability ahead of 0.7062/0.6991 as a break below this region would imply a deeper fall. 

Negative bias while below resistance line at 0.7414

“AUD/USD reached our near-term take profit at 0.7225 on Monday and is seeing a minor bounce, so far it has not even tested any resistance of note and the downside risk remains.”

“The aussie recently failed at the four-month downtrend at 0.7414 and we will retain a negative bias while capped here.”

“Minor support at 0.7222/20, the 27th August low guards 0.7106, the August low.” 

“Key support remains at 0.7062/0.6991. This represents the September and November 2020 lows. Below 0.6991 would trigger losses to the 50% retracement of the 2020-2021 move at 0.6760.”