Commerzbank enters a short AUD/USD at market as a technical trade recommendation with a stop at 0.9310, and a target at 0.9060. CB plans to add to this short at 0.9275.
“AUD/USD has taken out the 2014 uptrend and sold off aggressively. The intraday Elliott wave count has become more negative and it is suggesting the that .9203 recent low will not hold. Failure here will suggest that the market has in fact topped and trigger losses to the .9155 then .9060 levels. These represent the 38.2% and 50% retracements of the upmove seen this year,” Commerzbank projects.
“Previous trendline support will now act as resistance and should provide resistance at .9303 – while capped here the market will remain directly offered. Above .9310 (20 day ma) would suggest another run up towards the .9397 resistance line and the current May high at .9409, where we would again prepare for failure,” Commerzbank adds.
