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17 Jul 2013
Flash: AUD/USD, bearish bias targets 0.8880/0.8770 - JPMorgan
FXstreet.com (Barcelona) - Despite the AUD/USD has finished the U.S. session above the 20-day EMA, the first time that happens since April 30th, Niall O'Connor, FX Strategist at JP Morgan Securities, still thinks "the late-week breakdown in AUD/USD suggests the bearish bias is likely to extend into the coming week."
O'Connor has shifted his focus now on the line of supports near the critical .8880/.8770, noting "this area includes the channel support from the 2011 cycle high, the 76.4% retracement from the 2010 low and the August2010 reaction low and should be where AUD/USD attempts another short term retracement."
On the topside, O'Connor sees .9310/.9430 zone, "which includes the mid-June breakdown area will continue to act as key resistance while maintaining the short term downside bias" the Strategist at JP Morgan said.
O'Connor has shifted his focus now on the line of supports near the critical .8880/.8770, noting "this area includes the channel support from the 2011 cycle high, the 76.4% retracement from the 2010 low and the August2010 reaction low and should be where AUD/USD attempts another short term retracement."
On the topside, O'Connor sees .9310/.9430 zone, "which includes the mid-June breakdown area will continue to act as key resistance while maintaining the short term downside bias" the Strategist at JP Morgan said.