AUD/USD: A Monthly Close Below 0.7315/30 Would Target 0.6800/50 – NAB

The Australian dollar has been suffering on trade wars. How low can it go?

Here is their view, courtesy of eFXdata:

NAB discusses AUD/USD technical outlook and flags a bearish setup upon a break of the 2 year parallel uptrend channel at 0.7315/30. 

“Weekly hammer candle last week implies that LT support should hold on a multi-week basis providing short squeeze risk towards 0.7500/50.

Next major support where the May 2017 low coincides with the 61.8% retracement of the 2016/2018 uptrend and potential 2 year parallel uptrend channel at 0.7315/30.

A monthly close below 0.7315/30 will imply a full retracement of the 2016/2018 uptrend to 0.6800/50,” NAB argues.

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