AUD/USD is closer to 0.73 as the pair extends drop to 2.2% from 0.7478 high on 3 September. The aussie needs to hold above 0.7240 to avoid a deeper retracement, economists at Société Générale report.

Support 0.7240, resistance 0.7410

“AUD/USD experienced an initial bounce from the low of 0.7110 last month however it has petered out at a multi-month descending trend line near 0.7480/0.7500.”

“Daily RSI has also pulled back from the upper end of its recent range which denotes upside momentum is still lacking.”

“Defending 0.7240, the 61.8% retracement of the rebound will be crucial to avert a deeper down move.”

“A break above 0.7410 can result in an extended up move towards 0.7480/0.7500 and 200-DMA at 0.7600.”

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