AUD/USD to extend its decline on a break below Friday's low at 0.7443 – Commerzbank

FXStreet Insights Team FXStreet

AUD/USD stays pressured towards 0.7500 after posting a key day reversal on Friday. According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the market is going to see profit-taking in the US Dollar, allowing the aussie to stabilize.

Friday’s price action constituted a key day reversal

“AUD/USD sold-off on Friday into new lows for the year. It did not manage to close below the December low however and we would allow for some near-term profit-taking.”

“Note that the new low was not confirmed by the RSI and that Friday's price action constituted a key day reversal.”

“Below 0.7443 (Fridays low), the September high can be spotted at 0.7413 and the mid-September and early November highs at 0.7346/40.”

“The outlook is negative while capped by the 4th May low at 0.7675.”

“Initial resistance is the 25th June high at 0.7616 and the 20-day ma at 0.7595.”

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FXStreet Insights Team

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