Karen Jones, analyst at Commerzbank, points out that the AUD/USD pair has continued to bounce higher very near term, and suggest that their Elliott wave counts are negative and are looking for failure in this zone and for further weakness to 0.6950, this is the 61.8% retracement of the move up from January 2019.

“There is scope for the 0.6857/78.6% retracement. Rallies will find initial resistance at 0.7125 (55 day MA) and 0.7207 (end of February high) and are likely to remain capped by the 0.7231 200 day MA. Price action in January was exhaustive – the market charted a hammer (reversal). This suggests the down move ended at 0.6738.”