AUD/USD: Failure to reclaim 0.6780/0.6850 could trigger another down leg – SocGen

AUD/USD idles around 0.6650. If the pair fails to surpass 0.6780/0.6850, the decline is set to persist, analysts at Société Générale report.

Support 0.6550, resistance 0.6780

“AUD/USD has experienced a steady decline after forming a Head and Shoulders near peak of last August at 0.7130/0.7170. Neckline of the pattern at 0.6780/0.6850 is a short-term resistance zone. If the pair fails to overcome 0.6780/0.6850, the decline could extend.” 

“Below 0.6550, next potential supports are at 0.6400, the 76.4% retracement from last October and 0.6310.”