Flash: AUD/USD bullish case remains, watch for a 0.9380 break - ANZ

FXstreet.com (Barcelona) - AUD/USD has potential to extend further up, says Tim Riddell, Head of Global Markets Research at ANZ, in a note to clients late last week, although Riddell warns the fact that the underlying trend remains down and that any sustained break below 0.9380 may see the first sign the constructive bullish short term case may be at risk.

Key Quotes

"The squeeze above channel resistance reached 0.9510 (38.2% of the fall since April) faster than anticipated and so raises the potential for continued gains through the dubious “head and shoulders” target of 0.9600-20 for a possible 50% squeeze to 0.9720."

"Downside risks may have been pushed aside, for the time being, but this is still considered to be a corrective squeeze. Anything more than minimal dips could signal an end of this squeeze and hail (potentially) equally sharp pullbacks below 0.9200. Initial danger would be signalled by a slip below 0.9380."