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 overcome the confluence of resistances near 0.6900 representing the peak of June and a multi-month descending trend line resulting in a swift decline. It is gradually drifting towards potential support from low of May 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.