AUD/USD has reversed lower from a recent 0.7283 high. Potentially, weakness could be extended towards 0.6759, the 50% Fibonacci retracement of 0.5510-0.8007 range, Benjamin Wong, Strategist at DBS Bank, reports.

Extending recent weakness, await dips to engage

“On the weekly Ichimoku charts, prices linger under the cloud, which is a bearish signal. Tenkan resistance stands at 0.7243 which tangents with the cloud resistance at 0.7286 – such levels need to see a break and sustained over; before AUD can neutralise the current bearish vibes.”

“An intersecting trendline on the monthly charts puts AUD support into 0.6776. This nicely tangents into a 50% Fibonacci retracement of the 0.5510-0.8007 range extremes at 0.6759. Recent weakness would be extended, we await dips to engage.”