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11 Sep 2013
Flash: AUD/USD downside bias under pressure – ANZ
FXstreet.com (Lisbon) - Sharp AUD/USD rebounds off 0.8890 may induce calls for larger squeezes to 0.9500-10 (38.2% of fall since April) or even a “head and shoulders” target of 0.9600-20, suggests Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“Momentum indicators (daily and weekly) are supportive. The downtrend is still (just) in play, but a close above 0.9315 could push this bias aside in favor of a larger, but still corrective squeeze as part of broader range defining consolidation over coming weeks.”
“Conversely, near-term rebounds appear stretched. Any slippage below 0.9235 could indicate failure, trigger an effective bull-trap and a slide to the 0.9100-0.9150 area, possibly even a full return to the downtrend.”
Key quotes
“Momentum indicators (daily and weekly) are supportive. The downtrend is still (just) in play, but a close above 0.9315 could push this bias aside in favor of a larger, but still corrective squeeze as part of broader range defining consolidation over coming weeks.”
“Conversely, near-term rebounds appear stretched. Any slippage below 0.9235 could indicate failure, trigger an effective bull-trap and a slide to the 0.9100-0.9150 area, possibly even a full return to the downtrend.”