AUD/USD correction lower expected near term – Commerzbank

Karen Jones, FICC Technical Analysis at Commerzbank, sees a potential correction lower in AUD/USD in the very near term.

Key Quotes

“AUD/USD is poised to encounter its 200 week ma. Last week we saw the market halt just ahead of the .8011 200 week ma and very near term there is a 13 count on the daily chart and a TD perfected set up on the weekly chart and we suspect it will correct lower very near term. Currently the corrective zone is indicated to be circa .7820-.7750. While above the uptrend at .7670 we will assume it is capable of further gains”.

“Above .8011 targets the .8162/66 May 2015 peak and 50% retracement”.

“Longer term outlook is positive. The market has broken higher from a large triangle formation that targets eventually .8715 (one year + target)”.