AUD/USD: Failure to hold 0.6990 to result in continuation of downtrend towards 0.6770 – SocGen

AUD/USD returns above 0.70 helped by risk-on mood. However, economics at Société Générale expect the aussie to suffer a deeper slump to the 0.6770 mark. 

Key support for AUD/USD next at 0.6770

“An initial bounce is under way however signals of a meaningful up move are still not visible.” 

“Failure to hold 0.6990 can result in continuation of downtrend towards next objectives at 0.6910 and 0.6770, the 50% retracement from 2020.” 

“Immediate upside is likely to remain contained at 0.7130/0.7150.”