AUD/USD continues to sit on the base of its channel at 0.7260, which is so far holding on a closing basis. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the aussie would decline towards the August low at 0.7106 on a break below 0.7250.

Negative below the downtrend at 0.7577

“Failure at 0.7250 will target the 29th September low at 0.7171 and the August low at 0.7106.”

“Initial resistance is the 55-day ma at 0.7348 then 0.7430 the 9th November high and the 20-day ma at 0.7409. Above here lies the 0.7477 3rd September high and we look for the market to fail in this vicinity.” 

“Overall, longer-term bearish pressure will be maintained below 0.7534/77 (200-day ma, October high and the 7-month downtrend).”