AUD/USD: Downtrend at 0.7311 to cap the recovery – Commerzbank

AUD/USD is approaching the accelerated downtrend at 0.7311. The aussie is expected to struggle at this point, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key support remains at the 0.7062/0.6991 zone

“AUD/USD is approaching its accelerated downtrend found at 0.7311, 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 0.7430, 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.”