NAB discusses AUD/USD technical outlook and flags a scope for an upside extension towards 0.7000.
"Last week produced a new multi-year low that was quick to fail and once again highlighted strong demand for AUD/USD below 0.6700. The bullish three-day candle pattern completed on Thursday confirmed a renewed interim uptrend bias," NAB notes.
"Daily momentum indicators failed to confirm the new multi-year low and ST momentum bias is now positive. It is too early to confirm that a MT uptrend is in play. Weekly closes will dictate this outcome in the coming weeks. Multi-day to multi-week bias is now positive however. We anticipate a retest of the mid-September highs towards 0.6900 in the coming weeks," NAB adds.