8 Aug 2013
Flash: AUD/USD downtrend remains dominant – ANZ
FXstreet.com (New York) - Head of Global Markets Research Tim Riddell at ANZ postulates the short-term outlook of the AUD/USD.
Key quotes
“The failure of the AUD/USD to close above 0.9300 and neutralizing of momentum (rebounds in momentum, especially RSI breaching 50, reduced the divergence profile) now leave AUD at risk of continuing its slide towards the deep term retracement zone of 0.8550-0.8675. A rebound above 0.9070 may reduce imminent downside risks and allow for some consolidation.”
“The lack of decent rebounds has allowed for an early test of consolidation channel support and increases the potential of extending to the deep retracement levels in the 0.8550-0.8675 area - but that could end this cycle. Any extended move is at risk of a squeeze, but if rebounds again falter (need a close above 0.9070) the downtrend should persist.”
Key quotes
“The failure of the AUD/USD to close above 0.9300 and neutralizing of momentum (rebounds in momentum, especially RSI breaching 50, reduced the divergence profile) now leave AUD at risk of continuing its slide towards the deep term retracement zone of 0.8550-0.8675. A rebound above 0.9070 may reduce imminent downside risks and allow for some consolidation.”
“The lack of decent rebounds has allowed for an early test of consolidation channel support and increases the potential of extending to the deep retracement levels in the 0.8550-0.8675 area - but that could end this cycle. Any extended move is at risk of a squeeze, but if rebounds again falter (need a close above 0.9070) the downtrend should persist.”