AUD/USD: outlook from SEB, CB
AUD/USD has been consolidating this week above the key support at $0.9280 and below $0.9400 on the upside. The pair remains in a downtrend channel since Oct. 23.
SEB Bank calls the last several candles at the daily chart a bearish flag and expects Aussie to go down soon. The specialists propose selling in the $0.9360 area with stop at $0.9389 adding on below $0.9305 and $0.9279.
Commerzbank recommends attempting small shorts from $0.9375 with a stop at $0.9460. The analysts point out that the Elliott wave count is implying that the market will hold here but a close below $0.9283 would be enough to negate this. Below $0.9273 the bank targets $0.9195 (61.8% retracement of the move up from August) and then $0.9043 (78.6% retracement).
Chart. Daily AUD/USD