AUD/USD upside pressure mitigated below 0.7400 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the Aussie dollar needs to close below the 0.74 handle vs. the dollar to alleviate upside pressure.

Key Quotes

“AUD/USD last week sold off to and recovered from the 55 day ma at .7400, currently we are unable to dismiss the idea of ongoing near term strength towards the .7581 resistance line and the .7630 high – where we would expect the market to fail”.

“The market will need to close below the 55 day ma at .7400 to alleviate upside pressure and retarget the 200 day ma at .7307 and .7253, the 2016 support line. This is the break point to the .7146 May low”.