18 Feb 2014
Flash: AUD/USD, 0.9078/90 will define next directional bias - JPMorgan
FXStreet (Bali) - Nial Oc'Connor, FX Strategist at JP Morgan Securities, notes that the AUD/USD exchange rate is in a short term recovery phase, however, the .9078/90 zone will define whether a deeper retracement can develop, he said.
Key Quotes
"For AUD/USD, the recovery from the January low is the key factor for this developing view. This follows the bullish whipsaw around the important .8775/.8700 support zone."
"As mentioned in recent updates, .9078/90 includes the 76.4% retracement from the 2010 low, as well as the channel support from the 2011 cycle high (now at .8692)."
"With the advance taking on an impulsive, five-wave signature amid an oversold and bullishly diverging momentum setup, the potential for additional upside has increased. Still, the late-week pullback highlights the importance of the .9078/90 resistance zone."
"This area is the next important hurdle for a continuation of the upside bias. Importantly, this area includes the January high and the 38.2% retracement of the decline from the October peak."
"Note that AUD/USD has not broken through a previous month’s high since August but given the higher low for this month, we sense those odds are on the rise."
Key Quotes
"For AUD/USD, the recovery from the January low is the key factor for this developing view. This follows the bullish whipsaw around the important .8775/.8700 support zone."
"As mentioned in recent updates, .9078/90 includes the 76.4% retracement from the 2010 low, as well as the channel support from the 2011 cycle high (now at .8692)."
"With the advance taking on an impulsive, five-wave signature amid an oversold and bullishly diverging momentum setup, the potential for additional upside has increased. Still, the late-week pullback highlights the importance of the .9078/90 resistance zone."
"This area is the next important hurdle for a continuation of the upside bias. Importantly, this area includes the January high and the 38.2% retracement of the decline from the October peak."
"Note that AUD/USD has not broken through a previous month’s high since August but given the higher low for this month, we sense those odds are on the rise."