AUD/USD: Fast-approaching its 55 week ma - Commerzbank

In the view of Karen Jones, Analyst at Commerzbank, the AUD/USD pair needs to break through the 55-week MA at 0.7860 for further upside.

Key Quotes:

“AUD/USD cleared its 200-day ma at .7698 and shot aggressively higher through the 50% retracement of the move down from September at .7815. It is poised to encounter the 55-week ma at .7860 and it is possible that this will hold the initial test, we note the 13 count on the 240-minute chart. We will wait to buy the dip. Above here lies the .7896 13th October high and then .8000/.78.6% retracement. “

“The market is bid above the 200 and 55-day ma at .7698/64. This guards strong support – namely the 2016-2018 uptrend line and double Fibonacci retracement at .7526-.7475 (50% retracement of the move up from 2016 low AND the 78.6% retracement of the move seen from May 2017).”

“Short Term Trend (1-3 weeks): Bouncing from the 2016-2107 uptrend at .7526. Scope for .8000.“