AUD/USD at risk of a short-term correction — NAB

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The outlook from NAB Research

NAB Research discusses AUD/USD technical outlook and sees a scope for short-term correction towards 0.7032/82 in the next 1-2 weeks.

“Friday produced a new 2020 high at 0.7243 before closing at 0.7157
and completing a bearish ST (daily) reversal pattern. Such a trigger
implies that the uptrend has reached a point of ST exhaustion,” NAB notes. 

“Weekly and monthly momentum indicators continue to confirm a strong
and sustainable MT/LT uptrend bias. Daily momentum indicators however
have produced bearish failures at the recent highs and confirmed ST
correction risk.

Risk is high for a ST correction in the coming 1-2 weeks and retest of MT support at 0.7032/82,” NAB adds.

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