Forex Flash: AUD/USD Looking for 1.0523/85 to cap the rally – Commerzbank

FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank has taken a look at AUDUSD from a purely technical perspective.

Jones notes that AUDUSD continues to probe key resistance at 1.0480/1.0523 which are the November high at the 78.6% retracement of the last few months decline. This together with 1.0575, the 2011-12 resistance line is expected to cap the upside. Jones continues to write, "This should provoke failure and a slide back to 1.0355, the short term up trend. Failure at the November 1.0288 low is needed to trigger further losses. Above 1.0575 will negate our outlook and allow for gains to 1.0624 then 1.0857 - the 2012 high." Jones is currently short at 1.0480 with a stop at 1.0489 and a target of 1.0370.