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12 Mar 2014
Flash: AUD/USD not is bearish reversal - UOB Group
FXStreet (Barcelona) - Quek Ser Leang, Market Strategist at UOB Group notes that the current down-move in AUD/USD is likely part of a broad consolidation phase and not a bearish reversal.
Key Quotes
“The market sentiment soured quickly and this has resulted in AUD breaking below our key support at 0.8970. This suggests that the high of 0.9133 is the extent of the recent rally which fell short of the 0.9165 target.”
“However, based on the current momentum, the down-move is likely part of a broad consolidation phase and not a bearish reversal. Having said that, we expect downward pressure in the next few days but any further drop is likely to struggle near the strong support at 0.8850. Only a break back above 0.9070 will indicate that 0.9165 is back in sight.”
Key Quotes
“The market sentiment soured quickly and this has resulted in AUD breaking below our key support at 0.8970. This suggests that the high of 0.9133 is the extent of the recent rally which fell short of the 0.9165 target.”
“However, based on the current momentum, the down-move is likely part of a broad consolidation phase and not a bearish reversal. Having said that, we expect downward pressure in the next few days but any further drop is likely to struggle near the strong support at 0.8850. Only a break back above 0.9070 will indicate that 0.9165 is back in sight.”