NAB discusses AUD/USD technical outlook and notes that the upward short-term correction has not negated multi-month downtrend bias.
"Since finding support amidst the 2015 (0.6896) / 2016 (0.6827) lows, price has produced a 2-3 week upward correction. The incremental structure of this upswing is typically counter-trend.
Multi-week periods of consolidation have regularly followed impulsive downside breakouts in the recent years. The current bounce is in keeping with the MT downtrend. Wednesday’s bearish reversal was produced below key resistance levels at 0.7000/25 and confirms a renewed ST downtrend bias," NAB notes.
"The recent correction has not negated the negative MT momentum structure that remains firmly in play. One-month target at 0.6775. Three-month target at 0.6625," NAB adds.