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12 Jun 2013
Flash: Key markers to help define USD strength - JPMorgan
FXstreet.com (Barcelona) - There are several key markers for USD pairs that should help define whether the bullish shift is extending, says Niall O'Connor, FX strategist at JPMorgan.
For EUR/USD, O'Connor sees 1.2770/1.2650 zone as the first key test "as it represents the neckline of a broad head and shoulders
topping pattern" the strategist notes. Any violation. O'Connor notes, "should allow for a closer test of the 1.24 zone while raising the risk of a deeper extension into the 1.20 area and July low."
In the commodity currencies, for AUD/USD, the focus is on the .9580/.9390 zone - lows from 2012 and 2011 - O'Connor says, with a break lower setting the stage for a deeper decline "and likely sustained bearish shift" O'Connor notes.
USD/CAD key level is at 1.0450/1.065, with "an upside break confirming a broad basing pattern above 2012 low" O'Connor adds.
For EUR/USD, O'Connor sees 1.2770/1.2650 zone as the first key test "as it represents the neckline of a broad head and shoulders
topping pattern" the strategist notes. Any violation. O'Connor notes, "should allow for a closer test of the 1.24 zone while raising the risk of a deeper extension into the 1.20 area and July low."
In the commodity currencies, for AUD/USD, the focus is on the .9580/.9390 zone - lows from 2012 and 2011 - O'Connor says, with a break lower setting the stage for a deeper decline "and likely sustained bearish shift" O'Connor notes.
USD/CAD key level is at 1.0450/1.065, with "an upside break confirming a broad basing pattern above 2012 low" O'Connor adds.