AUD/USD could extend gains to 0.7769/0.7850 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the Aussie dollar could extend its rally vs. the greenback to the 0.7769/0.7850 band.

Key Quotes

“AUD/USD has seen an aggressive rally which has cleared with ease the 78.6% retracement at .7688 and also completed ignored the TD perfected set up”.

“Currently the market looks to be capable of challenging much tougher resistance offered by the .7769/.7850 zone – this is the location of the recent high, the 38.2% retracement (of the move down from June 2014), and the 2013-2016 resistance line and again we look for the market to struggle here”.

“The intraday and daily Elliott wave counts all indicate that this is the end of the move and we will attempt to sell rallies”.