Back
20 Aug 2013
Flash: Buy AUD/USD on dips, look to fade upside through 0.93+ - JPM
FXstreet.com (Barcelona) - The vigorous bounce in the AUD/USD off trend lows has raised the risk that further retracement can develop, notes Niall O'Connor, Currency Strategist at JP Morgan Securities.
Key Quotes
"For AUD/USD, the reversal from the .8855/.8770 support zone is important as it represents the key channel support from the 2011 cycle peak, the 76.4% retracement of the rally from the 2010 low, as well as the August ’10 reaction low. Moreover, last week’s bullish reversal pattern from this support zone can allow for additional upside follow through."
"Still, we sense the next line of key resistance levels will be a more difficult hurdle to break. The .9300/.9345 resistance area is the important test as it represents the late-June/July range highs and an ideal area for a reversal particularly given the impulsive reversal from last month. In turn, we will look to fade any additional upside retracement into this key resistance zone."
Key Quotes
"For AUD/USD, the reversal from the .8855/.8770 support zone is important as it represents the key channel support from the 2011 cycle peak, the 76.4% retracement of the rally from the 2010 low, as well as the August ’10 reaction low. Moreover, last week’s bullish reversal pattern from this support zone can allow for additional upside follow through."
"Still, we sense the next line of key resistance levels will be a more difficult hurdle to break. The .9300/.9345 resistance area is the important test as it represents the late-June/July range highs and an ideal area for a reversal particularly given the impulsive reversal from last month. In turn, we will look to fade any additional upside retracement into this key resistance zone."