AUD/USD targets the 0.7284 55-month moving average – Commerzbank

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AUD/USD trades around 0.7175 after posting a daily high of 0.7186. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the aussie testing the 200-week ma at 0.7257 but with the 55-month ma at 0.7284 capping as RSI has not confirmed the new high. 

Key quotes

“AUD/USD continues to hold over the 20-day ma at 0.7126 but it is possible that it will test the 200-week ma at 0.7257 and the 55-month moving average at 0.7284. If seen, we would allow this to again hold as we note the diverging RSI.” 

“We have the December high at 0.7031 and the four-month uptrend at 0.6905. Key support is offered by 0.6778/74, the February high and mid-June low. This latter level is reinforced by the 200-day ma at 0.6708 and could be reached within this correction lower.” 

“Above 0.7284 lies the 0.7394 December 2018 high and the 0.7574 78.6% retracement.”