AUD/USD: Testing the accelerated downtrend – Commerzbank

AUD/USD is correcting higher near term and has reached its accelerated downtrend at .6641. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, recommends being cautious. 

Key quotes

“The recent low of .6433 was accompanied by a divergence of the daily RSI. The market is overstretched and we have 13 counts on the daily, weekly and monthly charts and this implies that we are at the end stage of a longer-term down move, together with divergence, so extreme caution is warranted.” 

“The market will have to overcome the accelerated downtrend at .6641 and the October low at .6671 on a closing basis to alleviate immediate downside pressure and target the 200-day ma at .6836.”