AUD/USD: Bid above the uptrend at 0.6592, tough barrier at the 0.7031 December 2019 high – Commerzbank

AUD/USD has held the initial test of the February high at 0.6774 and is expected to stabilize from here but it is difficult to see the aussie breaking above the 0.7031 December 2019 high, Commerzbank’s Karen Jones informs.

Key quotes

“AUD/USD has eased back to initial support offered by the 0.6774 the 5 February high and has seen an initial rebound from here. It is possible that this is all the correction we will see, but we suspect that it will struggle to again overcome the 0.7031/62 resistance.” 

“Below 0.6774 lies the 200-day ma at 0.6667. Key support is offered by the two-month uptrend at 0.6592 and this maintains an upside bias. Provided this holds then the market will remain capable of recovery to retest the 0.7031 December 2019 high and the 0.7062 recent high. Beyond 0.7065 lies the 55-month ma at 0.7290.”