AUD/USD: Above .7900 would target the .7998/.8000 78.6% retracement - Commerzbank

In view of Karen Jones, Analyst at Commerzbank, the AUD/USD pair is set to extend its bounce and a momentum beyond the 0.7900 handle has scope for testing the key 0.80 psychological mark.

Key quotes:

“AUD/USD is side lined, but extremely bid and poised to test the .7896 mid-October high at this point this is exposed and above here will target the .7998/.8000 78.6% retracement. This is considered to be the last defence for the .8125 September high.”

“While capped by .7896 we remain unable to rule out more of a retracement towards the 200 day ma at .7706. The market is bid above the 200 and 55 day ma at .7706/.7672. These guards strong support – namely the 2016-2018 uptrend line and double Fibonacci retracement at .7534/.7475 (50% retracement of the move up from the 2016 low AND the 78.6% retracement of the move seen from May 2017).”