11 Jun 2013
Flash: AUD/USD faces deeper falls on clean 0.94 breakout - JPMorgan
FXstreet.com (Barcelona) - Despite an oversold framework, the decline in the AUD/USD maintains an overall trending bias after
signs of sustained recovery failed to materialize, says Nial O'Connor, FX strategist at JPMorgan.
O'Connor acknowledged the importance of support near 0.9400, somehow seen as the last chance by buyers to join forces and try to revert the trend, as otherwise a clear breakout opens room for much deeper declines.
As the strategist warns, "violations of this support zone would likely confirm a deeper corrective phase is underway suggesting the broad consolidation phase below the 2011 cycle peak is transitioning into a sustained decline."
Even if a meaningful bounce is seen, price should struggle against resistance levels starting with the .9840/75 zone - violated trendline from the 2011 low -, says O'Connor, who sees intermediate bearish risks to remain intact.
signs of sustained recovery failed to materialize, says Nial O'Connor, FX strategist at JPMorgan.
O'Connor acknowledged the importance of support near 0.9400, somehow seen as the last chance by buyers to join forces and try to revert the trend, as otherwise a clear breakout opens room for much deeper declines.
As the strategist warns, "violations of this support zone would likely confirm a deeper corrective phase is underway suggesting the broad consolidation phase below the 2011 cycle peak is transitioning into a sustained decline."
Even if a meaningful bounce is seen, price should struggle against resistance levels starting with the .9840/75 zone - violated trendline from the 2011 low -, says O'Connor, who sees intermediate bearish risks to remain intact.