24 Jul 2013
Flash: AUD/USD, 0.8870/0.8770 next important target - JPMorgan
FXstreet.com (Barcelona) - AUD/USD weekly chart suggests the bearish setup remains intact, with recent corrective price action pointing at 0.8870/0.8770 as the next important target area, according to JP Morgan FX Strategists.
Key quotes
"Recent retracements have struggled against initial resistance levels in the .9300/.9440 area (June breakdown zone). Still, the persistent oversold setup suggests new lows are likely to be limited."
"Short term targets enter at the .8870/.8770 zone which includes the channel support from the 2011 cycle high, as well as the 76.4% retracement of the rally from the 2010 low. Note this area should allow for a more protracted corrective phase given the potential for significant momentum divergences."
"A break above the .9440 area would instead argue for a more immediate recovery phase with potential to extend back to the .9600/65 area (38.2% retrace from April) and where any follow-through strength should struggle."
Key quotes
"Recent retracements have struggled against initial resistance levels in the .9300/.9440 area (June breakdown zone). Still, the persistent oversold setup suggests new lows are likely to be limited."
"Short term targets enter at the .8870/.8770 zone which includes the channel support from the 2011 cycle high, as well as the 76.4% retracement of the rally from the 2010 low. Note this area should allow for a more protracted corrective phase given the potential for significant momentum divergences."
"A break above the .9440 area would instead argue for a more immediate recovery phase with potential to extend back to the .9600/65 area (38.2% retrace from April) and where any follow-through strength should struggle."