NAB FX Technical Strategy Strategy Research notes that AUD/USD repeated failures above 0.77 in 2017 confirm that resistance at 0.7750/0.7835 is likely to remain a firm obstacle.
"The recent bullish weekly reversal pattern has had a neutralising impact on the multi-month downtrend. This places us in a low conviction state while negative MT momentum bias diminishes but is yet to confirm a positive reversal," NAB argues.
"A weekly close below 0.7360/70 is necessary to confirm that the MT downtrend is again sustainable, targeting a return to one-year range lows at 0.7150/00. A break above 0.7556 will further neutralise the downtrend bias," NAB adds.
AUD/USD is trading circa 0.7380 as of writing.
Source: NAB ResearchOriginal Article
