2 Jul 2013
Flash: AUD/USD, risks for a test of 0.8900/0.8800 intact - JPMorgan
FXstreet.com (Barcelona) - Despite the shift into short term consolidations, the price action in both the AUD/USD and NZD/USD has failed to suggest a bullish shift, says Niall O'Connor, Technical Analyst at JPMorgan Securities.
The downside risks on the AUD/USD remains intact, O'Connor says: "AUD is attempting to hold above the key .9145 area which includes the 38.2% retracement of the rally from the 2008 low, as well as the equal swing target from the 2011 cycle peak."
AUD/USD should first overcome 0.9440 in order to ease the selling pressure, otherwise the downside remains exposed for a test of 0.8900/0.8800, O'Connor said. "This area includes the channel support from 2011, and the 76.4% retracement from the 2010 low."
The downside risks on the AUD/USD remains intact, O'Connor says: "AUD is attempting to hold above the key .9145 area which includes the 38.2% retracement of the rally from the 2008 low, as well as the equal swing target from the 2011 cycle peak."
AUD/USD should first overcome 0.9440 in order to ease the selling pressure, otherwise the downside remains exposed for a test of 0.8900/0.8800, O'Connor said. "This area includes the channel support from 2011, and the 76.4% retracement from the 2010 low."