NAB discusses AUD/USD technical outlook and highlights the importance of a weekly close below 0.6950 to shift its bias into bearish in the medium-term and cut its targets accordingly on a 3-month basis. NAB now targets AUD/USD at 0.6830 in 1-month.
"Price is pushing lower within our proposed 0.68/0.72 MT range. Last week’s close was indecisive. A weekly close this week below 0.6950 will confirm a pending test of range lows. When weekly Bollinger bands shift from narrowing to diverging, trends typically evolve. This is now the case and confirms that price is shifting from a multi-month range environment to a multi-month downtrend environment. Recent MT momentum triggers are negative and confirm the renewed MT downtrend bias," NAB notes.
"Current one-month target lowered to 0.6830. Three-month target remains at 0.7200. If the weekly close is below 0.6950 we will likely lower our 3mth target aggressively on Monday," NAB adds.