Micaella Feldstein, Research Analyst at Natixis, explains that since mid-march 2017 when AUD/USD failed to break above the 0.7750 area, the cross has retreated markedly and now threatens to test an important support at 0.7483 (daily Bollinger lower band).
“Caution will be in order as a break below this support would unleash strong downside potential, paving the way for a deeper corrective decline to 0.7444-0.7453 (Fibonacci extensions) and to 0.74-0.7411 (monthly Bollinger moving average). The resistances are located at 0.7580, at 0.7621, at 0.7682 and at 0.7737-0.7750.”
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