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26 Jun 2013
Flash: AUD/USD weakness to resume post correction – ANZ
FXstreet.com (New York) - According to Head of Global Markets Research Tim Riddell at ANZ, “The AUD/USD price action below 0.9500 is still seen as forming the last legs of the slide from 1.0585 – a failure to sustain levels above 0.9400 has triggered extensions of the downtrend.”
Although the gyrations in the 0.9150-0.9300 area lack impulse (so there is risk of yet another slide towards 0.9060-75), this still looks like a trend ripe for a correction. A close above 0.9300 will be encouraging, but a clear break of trend channel resistance is needed to confirm a period of corrections.
AUD/USD at risk for weakness
“Despite mounting divergence, the failure to break the down channel led to yet further slippage to the 0.9140-60 retracement level (extension risk persists). However, this divergence now puts the balance of risks towards a sustained squeeze. A push above 0.9300 may encourage the squeeze, but a close above 0.9380 is needed to trigger retracements to lower targets of 0.9690-00 and 0.9850-60. The broader bias is for AUD weakness to resume post this correction.” Riddell warns.
Although the gyrations in the 0.9150-0.9300 area lack impulse (so there is risk of yet another slide towards 0.9060-75), this still looks like a trend ripe for a correction. A close above 0.9300 will be encouraging, but a clear break of trend channel resistance is needed to confirm a period of corrections.
AUD/USD at risk for weakness
“Despite mounting divergence, the failure to break the down channel led to yet further slippage to the 0.9140-60 retracement level (extension risk persists). However, this divergence now puts the balance of risks towards a sustained squeeze. A push above 0.9300 may encourage the squeeze, but a close above 0.9380 is needed to trigger retracements to lower targets of 0.9690-00 and 0.9850-60. The broader bias is for AUD weakness to resume post this correction.” Riddell warns.