20 Aug 2013
Flash: AUD/USD at critical juncture, failure at support could unravel pair – ANZ
FXstreet.com (New York) - Tim Riddell, Head of Global Markets Research at ANZ analyzes the short-term outlook of the AUD/USD.
Key quotes
The downtrend definitely remains in place and the style of bounces off 0.8850 is indicative of corrective squeezes. 0.9050-60 now needs to hold to allow for a retest of the relatively pivotal 0.9300 area, if not waning potential of a standard move to 0.9500.
“Further signs of faltering must be adequately acknowledged as they could signal a swift return to the downtrend and renewed slippage towards the 0.8550-0.8675 area.”
After testing broad consolidation channel support (at 0.8840-50) the potential turn in momentum (RSI already turning) could induce further interim corrections of the fall from the tight range seen into May.
“The standard target lies at 0.9500, but, as noted, failure to breach 0.9300 would keep the broader downtrend in play for an early test of 0.8550-0.8675.”
Key quotes
The downtrend definitely remains in place and the style of bounces off 0.8850 is indicative of corrective squeezes. 0.9050-60 now needs to hold to allow for a retest of the relatively pivotal 0.9300 area, if not waning potential of a standard move to 0.9500.
“Further signs of faltering must be adequately acknowledged as they could signal a swift return to the downtrend and renewed slippage towards the 0.8550-0.8675 area.”
After testing broad consolidation channel support (at 0.8840-50) the potential turn in momentum (RSI already turning) could induce further interim corrections of the fall from the tight range seen into May.
“The standard target lies at 0.9500, but, as noted, failure to breach 0.9300 would keep the broader downtrend in play for an early test of 0.8550-0.8675.”