26 Nov 2013
Flash: AUD/USD, greater risks of a 2013 lows retest - ANZ
FXstreet.com (Barcelona) - According to Tim Riddell, Head of Global Markets Research at ANZ, the sharpness in the latest AUD/USD sell-off suggest that a retests of 2013 lows is now on the cards.
Key Quotes
"The extending pullbacks from 0.9760 (0.9720 being 50% of 2013’s range) suggest that a deep and volatile consolidation is developing off the mid-2013 lows (0.8850-0.8900)."
"Although this is the current favoured profile, the sharpness of the current slide will raise concerns of another down-leg being in play which could force a full test of the deep retracement zone (0.8550-0.8675), as highlighted above."
"The faltering of rebounds at the first major hurdle of 0.9460 at the beginning of last week set the tone for further slides to test the next standard retracements at 0.9150-60. The abrupt test of this level now increases the risk of a measured slide to 0.8960."
"Bounces off 0.9150 should struggle around 0.9260 (possibly just 0.9215) and a close above 0.9295 is needed to reduce the current negative bias for further deep retracements into year end."
Key Quotes
"The extending pullbacks from 0.9760 (0.9720 being 50% of 2013’s range) suggest that a deep and volatile consolidation is developing off the mid-2013 lows (0.8850-0.8900)."
"Although this is the current favoured profile, the sharpness of the current slide will raise concerns of another down-leg being in play which could force a full test of the deep retracement zone (0.8550-0.8675), as highlighted above."
"The faltering of rebounds at the first major hurdle of 0.9460 at the beginning of last week set the tone for further slides to test the next standard retracements at 0.9150-60. The abrupt test of this level now increases the risk of a measured slide to 0.8960."
"Bounces off 0.9150 should struggle around 0.9260 (possibly just 0.9215) and a close above 0.9295 is needed to reduce the current negative bias for further deep retracements into year end."