AUD/USD has recently failed at the 200-day moving average (DMA) at 0.7551 and last week broke down further. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the aussie is set to tackle the 55-DMA at 0.7360. A break below here would open up 0.7171.

Rallies to be capped at the 0.7450 level

“AUD/USD is poised to encounter the 55-DMA at 0.7360. Failure here will target the base of the channel at 0.7241 and the 29th September low at 0.7171. 

“Intraday Elliott wave counts are implying rallies to 0.7450 will struggle.”