AUD/USD: Deeper decline - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the 0.7734-0.7746 area (daily Bollinger upper band) for AUD/USD pair has capped the upside once again on mid-March 17 (it had already halted the upside on Feb 17) and forced the cross to reverse downside.

Key Quotes

“The daily indicators have turned around and the 0.7626-0.7635 area (daily Bollinger moving average) was eroded, suggesting a deeper decline to 0.7503 (daily Bollinger lower band).”

“Note that the cross needs to stay above the latter threshold to avoid a larger decline to 0.7453 (weekly parabolic) even to 0.7413 (monthly Bollinger moving average). The resistances lie at 0.76, at 0.76260.7635, at 0.7680-0.77 and at 0.7734-0.7746.”