AUD/USD remains on target for 0.7054/.6991 as downtrend at 0.7302 caps – Commerzbank

AUD/USD is struggling around 0.7250 as it approaches the accelerated downtrend at 0.7302. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the aussie to move back down towards the 0.7062/0.6991 region. 

Under pressure while below 55-DMA at 0.7422

“AUD/USD is approaching its accelerated downtrend found at 0.7302, which we would allow to hold the initial test.”

“Key support remains at its initial downside target at 0.7062/0.6991, these represent the September and November 2020 lows.”

“Above the accelerated downtrend lies the 0.7427 4th August high and the 55-day ma at 0.7422, and while capped here a negative bias will be maintained.” 

“Below 0.6991 would trigger losses to the 50% retracement of the 2020-2021 move at 0.6760.”