NAB discusses AUD/USD technical outlook and highlights the importance of this weekly's close for directional bias.
"After producing a material base below 0.6700 in August through October we note that AUD/USD has produced a subsequent higher high and higher low, implying that a MT uptrend is evolving....Trend support at 0.6830/40 must hold in order to maintain the MT uptrend bias. weekly close below 0.6897 will complete a bearish three-week reversal pattern. After rejecting the weekly cloud this would place the evolving MT uptrend at significant risk," NAB notes.
"The weekly close holds the key to our MT outlook. Below 0.6897 confirms bearish risk. Below 0.6830/40 that risk grows. Above 0.6942 maintains the uptrend," NAB adds.