Australian dollar technicals

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From FL comes some neat technicals for the Aussie dollar via Soc Gen:

  • AUD/USD has recently tested a projection at 0.7650/30, also the 76.4% retracement from last December and the 38.2% retracement from 2016. It is worth noting that since 2016, the corrections in the pair tend to bottom out near the 76.4% of previous up moves (which is 0.7650 currently). With weekly and daily indicators near support, 0.7650/30 and more importantly the weekly channel at 0.7610/0.7580 should be near term support levels. Only if 0.7610/0.7580 breaks,
  • AUD/USD will then head towards the key support near 0.75/0.7477, the 50% retracement. This will be a decisive level for a much deeper down move. Shorter term, the pair has formed a daily bullish engulfing denoting a rebound is likely. Holding above 0.7650/30, the pair should head towards 0.7760, the 23.6% retracement from January with next resistance located at the daily descending trend at 0.7830
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.