27 Sep 2013
Flash: Short term bullish shift is underway for AUD - JPMorgan
FXstreet.com (Barcelona) - A short term bullish shift is underway for AUD, yet the medium term underlying bearish trend is unlikely to be disturbed, JP Morgan FX Strategists note.
Key Quotes
"The push above the key .9230/.9345 zone which included the range highs from June suggests a more protracted corrective phase above the August low can develop."
"While some pause can develop against .9500/50 (38.2% retracement), a test of deeper targets in the.9665/.9800 area cannot be ruled out. Note this area is viewed as a max. Support in the .9225/.9135 will be the key test for the potential bullish setup."
"Failures would imply a deeper pullback and potential retest of the August lows. Again, this area effectively held the critical .8850/.8770 zone (channel support from the 2011 cycle high, the 76.4% retracement of the rally from the 2010 low, as well as the August 2010 reaction low). Violations would reassert the medium term trend."
Key Quotes
"The push above the key .9230/.9345 zone which included the range highs from June suggests a more protracted corrective phase above the August low can develop."
"While some pause can develop against .9500/50 (38.2% retracement), a test of deeper targets in the.9665/.9800 area cannot be ruled out. Note this area is viewed as a max. Support in the .9225/.9135 will be the key test for the potential bullish setup."
"Failures would imply a deeper pullback and potential retest of the August lows. Again, this area effectively held the critical .8850/.8770 zone (channel support from the 2011 cycle high, the 76.4% retracement of the rally from the 2010 low, as well as the August 2010 reaction low). Violations would reassert the medium term trend."