Bank of America Merrill Lynch Technical FX Strategy Research notes that a triangle bottom in AUD/USD was confirmed with the bullish monthly breakout in July 2017.
"The rally since the formation of the triangle bottom was rejected by the juncture of the 50 and 200 month SMA’s.
A retest of the dashed breakout point and rising 12m and 20m SMA’s could be a point to consider going long AUD/USD," BofAML adds.
In line with this view, BofAML thinks that dips between 0.7600, and 0.7640 should provide good entry levels to consider long positions.
Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article
