Economists at Société Générale analyze AUD/USD technical outlook.
Break above recent peak of 0.6900 essential to affirm a meaningful uptrend
AUD/USD failed to break above the resistance confluence near 0.6900 that represented the June top and a multi-month descending trend line resulted in a sharp decline. It is slowly drifting towards potential support from the May low near 0.6460/0.6410.
The 200-DMA has turned flat denoting lack of clear direction. A bounce is expected however a break above recent peak of 0.6900 would be essential to affirm a meaningful uptrend.
In case the pair establishes below 0.6460/0.6410, the decline could extend. Next objectives would be at 0.6350 and projections of 0.6200.
