AUD/USD: Expect initial failure below the 0.7896 mid-Oct high - Commerzbank

Karen Jones, Analyst at Commerzbank, provides key technical levels for trading AUD/USD today.

Key Quotes:

“AUD/USD reached the 200-week ma at .7854 and we note the TD perfected set up on the daily chart and the 13 count on the 240-minute chart. We still look for initial failure below the .7896 mid-October high. We would allow for a retracement towards the 200-day ma at .7702. The market is bid above the 200 and 55-day ma at .7701/.7665. These guard strong support – namely the 2016-2018 uptrend line and double Fibonacci retracement at .7534/.7475 (50% retracement of the move up from 2016 low AND the 78.6% retracement of the move seen from May 2017).”

“Above .7900 would target the.7998/.8000 78.6% retracement.“

“Short Term Trend (1-3 weeks): Bouncing from the 2016-2107 uptrend at .7524. Scope for .7900/.8000 region.”