Forex Flash: AUD/USD directly offered and targeting 0.9845/38 – Commerzbank

FXstreet.com (Barcelona) - The AUD/USD is recovering just ahead of initial support at 1.0216/04 (78.6% retracement and the 11th March low) after the selloff. “This has held the initial test (we note the hammer charted a couple of days ago) and this is also considered to be the last defense for the 1.0116 recent low”, wrote analyst Karen Jones, adding that the market is directly offered below its 200 day ma at 1.0397 and initial resistance lies at 1.0358, the high charted on Friday 19th April. “While capped here, the market will remain directly offered”.

In regard to support, 1.0116/00 represents the bottom of a 9 month range and break down from here will be significant. “We target the 0.9845/38 zone – the 2011-2013 support line and the 200 week ma longer term”, she said.