The Australian dollar remains on the back foot together with its commodity currency peers. What’s next for AUD/USD?
The team at TD examines the charts and sees bearish patterns and targets at lower ground:
Here is their view, courtesy of eFXnews:
The soft undertone to AUDUSD price action that accumulated through late 2014 has become much more pronounced in the very early stages of 2015, notes TD.
“The weekly chart, shows AUDUSD breaking lower from the extended consolidation range (bear wedge) that developed through Q3 2013/Q3 2014.Implicit here is that spot is poised to fall by a similar amount as the move lower that preceded the consolidation (roughly 19 big figures from the breakdown point – i.e. targets 0.6760) over the next 12-18 months,†TD clarifies.
“Technical patterns suggest potential support emerging in the 0.7600/50 area in the next few weeks but we have to expect that 0.79/0.80 will be strong resistance in the event of a minor rebound. Look to sell rallies,†TD projects.
“The monthly chart underscores significant downside risks building for the AUD in the longer run too. There is nothing in the way of obvious support for the AUD now ahead of 0.7204 (76.4 retracement of the 2009/11 rally) and, if the weekly patterns are correct, the AUD will not stop there,†TD adds.
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