AUD/USD: Strong near term recovery – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that AUD/USD is showing signs of recovery well ahead of 0.6735.

Key Quotes

“For any notable sustained recovery to be seen the market will need to overcome the 2019 downtrend line at .6889. This resistance is reinforced by the 200 day ma at .6919 (this is starting to look exposed). Initial support offered by the .6724 October 16 low ahead of the .6671 October low.”

“We suspect that this will again hold for further ranging. Above the 200 day ma targets .7076, the mid- July high. The 2013- 2019 downtrend lies at .7186.”

“Failure at .6671 on a closing basis targets the .6548 February 1999 high. We note TD support on the weekly chart at .6535 also.”