8 Nov 2013
Flash: AUD/USD, further selling likely - ANZ
FXstreet.com (Barcelona) - AUD is likely to have formed an interim high, based on the price action revealed in recent weeks, notes Tim Riddell, Head of Global Markets Research at ANZ.
Key Quotes
"The sharpness of the slump from 0.9760 (87.20 being 50% of 2013’s range) has pushed aside the risk of larger scale retracements to 99.60-70 (50% of the whole range off the 1.1080-85 high)."
"The style of the setback also increases the likelihood that AUD has formed an interim high, though still within the context of a broad consolidation pattern. Although further slippage is likely, the depth of pullbacks will be critical in determining whether 0.8850 formed a cyclical low, or merely an interim base."
"Rebounds should be contained and the price action off the low 0.94’s is consistent with short term corrections, rather than a more pronounced rebound. This suggests that rebounds should be seen as short-lived (likely to falter in the 0.9590 area) before declines resume through 0.9410-30 towards the 0.9280-0.9300 area."
Key Quotes
"The sharpness of the slump from 0.9760 (87.20 being 50% of 2013’s range) has pushed aside the risk of larger scale retracements to 99.60-70 (50% of the whole range off the 1.1080-85 high)."
"The style of the setback also increases the likelihood that AUD has formed an interim high, though still within the context of a broad consolidation pattern. Although further slippage is likely, the depth of pullbacks will be critical in determining whether 0.8850 formed a cyclical low, or merely an interim base."
"Rebounds should be contained and the price action off the low 0.94’s is consistent with short term corrections, rather than a more pronounced rebound. This suggests that rebounds should be seen as short-lived (likely to falter in the 0.9590 area) before declines resume through 0.9410-30 towards the 0.9280-0.9300 area."