AUD/USD rebounds should be corrective – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, rebounds in the Aussie dollar should be temporary.

Key Quotes

“AUD/USD last week charted a key day reversal and with a 13 count as well and both suggest the end of the down move for now”.

“However the market has yet to overcome the 200 day ma at .7254, which leaves it still on the defensive. We suspect that we will see a deeper retracement near term into the .7275/.7360 zone. We will remain on the sidelines for now”.

“Beyond a corrective rebound, we favour losses to the 78.6% retracement at .7044. This remains the last defense for the .6828 January low.