10 Jul 2013
Flash: EUR/AUD short-term outlook at 1.3800/20 – Westpac
FXstreet.com (New York) - According to Global FX Strategist Sean Callow at Westpac, “Stretched AUD positioning and a dovish ECB should prevent EUR regaining its recent losses versus AUD near-term.”
“We should see the pair test 1.3800/20, perhaps even 1.35-1.36. But by early August, the RBA rate cut we expect should hurt AUD once more, threatening a return to the 1.4300 area, especially if the ECB takes its time to agree on fresh easing measures.” Callow adds.
As is the case with most AUD crosses, all major moving averages are a long way from the spot rate. “Our technical analysts view recent AUD outperformance as significant, opening up short-term targets at 1.3800/20 and quite possibly 1.35-1.36 (Fibonacci retracement and head and shoulders targets).”
“We should see the pair test 1.3800/20, perhaps even 1.35-1.36. But by early August, the RBA rate cut we expect should hurt AUD once more, threatening a return to the 1.4300 area, especially if the ECB takes its time to agree on fresh easing measures.” Callow adds.
As is the case with most AUD crosses, all major moving averages are a long way from the spot rate. “Our technical analysts view recent AUD outperformance as significant, opening up short-term targets at 1.3800/20 and quite possibly 1.35-1.36 (Fibonacci retracement and head and shoulders targets).”