AUD/USD: to fall for a sixth consecutive week? - BBH

Analysts at Brown Brothers Harriman explained that the Australian dollar has fallen for five consecutive weeks.

Key Quotes:

"It has dropped 8.4% since peaking on April 21 near $0.7835. With the push below $0.7200, the Aussie retraced 61.8% of the advance off the year's low set in mid-January a little below $0.6830. "

"The technical indicators are getting stretched, but they have not turned. Speculative longs in the futures market continue to exit, but there is scope for more liquidation.

Participants should be on the look out of a reversal pattern to signal a correction.

We look for the $0.7270-$0.7300 area should cap corrections."