Forex Flash: AUD/USD potential decline lies ahead – Commerzbank
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AUD/USD
FXstreet.com (Barcelona) - The Aussie dollar is prolonging its bearishness on Monday, now trading back above the key level at 1.0400 after navigating session lows in the 1.0385 region, ahead of the RBA monetary policy meeting due on February 5th. It is worth noting that market consensus remains divided regarding the likeliness of a rate cut.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross would be testing the 3-month uptrend and a break below 1.0375 and 1.0345 would be required to accelerate the descent. "Ultimately we look for failure through the December low at 1.0345 to trigger another leg lower to the 1.0149 October low", Jones informed.
Expanding the horizon to 1-3 months, the expert concluded that: "Looking for market to remain capped by 1.0624 and for a slide back to 1.0000 to unfold", ahead of the longer-term objective at 0.9778
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross would be testing the 3-month uptrend and a break below 1.0375 and 1.0345 would be required to accelerate the descent. "Ultimately we look for failure through the December low at 1.0345 to trigger another leg lower to the 1.0149 October low", Jones informed.
Expanding the horizon to 1-3 months, the expert concluded that: "Looking for market to remain capped by 1.0624 and for a slide back to 1.0000 to unfold", ahead of the longer-term objective at 0.9778
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