5 May 2014
AUD/USD: short term risks argue for additional downside - JPMorgan
FXStreet (Bali) - Niall O'Connor, FX Strategist at JP Morgan Securities, argues for further downside in AUD/USD.
Key Quotes
"The pullback from the critical .9450/.9550 resistance zone remains intact as the short term risks argue for additional downside."
"Again, this critical resistance zone includes the November peak and the 76.4% retracement from the October high."
"As important, the late-week decline is consistent with the view for additional downside given the push below the .9228/05 support zone. This area includes the April low and the uptrendline from the late-January low."
"In line with this break, the focus is now on the .9155/35 support area. As this area represents the 38.2% retracement from the January low, the November breakout area and the 200-day moving average, violations would likely confirm a deeper retracement into the .8900/.8800 zone."
Key Quotes
"The pullback from the critical .9450/.9550 resistance zone remains intact as the short term risks argue for additional downside."
"Again, this critical resistance zone includes the November peak and the 76.4% retracement from the October high."
"As important, the late-week decline is consistent with the view for additional downside given the push below the .9228/05 support zone. This area includes the April low and the uptrendline from the late-January low."
"In line with this break, the focus is now on the .9155/35 support area. As this area represents the 38.2% retracement from the January low, the November breakout area and the 200-day moving average, violations would likely confirm a deeper retracement into the .8900/.8800 zone."