Currency Analyst since 2010

AUD/USD: negative views

Analysts at SEB Bank see a bearish flag on the AUD/USD chart. The specialists note that the bulls made an unsuccessful attempt to break this pattern last week, and there was a false break on the chart. In their view, the selling pressure has increased as false breaks usually precede a break in the opposite direction (down). SEB says that a fall below $0.8848/20 would provoke a decline to 0.8066/82.

Commerzbank also think that we may see a continuation of downtrend in AUD/USD. For confirmation the bears will have to pull Aussie below $0.8822 and make it close there. Targets on the downside are at $0.8717 (the base of the 2-year descending channel), $0.8550 and $0.8068. A close above $0.8990 would negate this view. Commerzbank proposes selling AUD/USD at the current levels, adding at $0.8975 and with stop at $0.9020.

Chart. Daily AUD/USD

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