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22 May 2013
Flash: AUD/USD, bearish dynamics should persist
FXstreet.com (Barcelona) - The dynamics for AUD/USD have undergone a bearish shift over the past few weeks given the breakdown below critical support levels, says JP Morgan in a note to clients from late last week.
"The break below 1.01 support on May 9 had led to an impulsive decline while suggesting an increased risk the pair is transitioning away from the broad consolidation phase to a renewed bear trend" the bank added.
For the short term, "given the relevance of .9700/.9580 support area – includes the 2012 low, some consolidation seems likely particularly as momentum studies are reaching an oversold extreme" JPMorgan said.
"Until a break back above the 1.0115/1.0220 resistance – and recent breakdown zone – the downside risks should remain intact" JPMorgan said, with a target of .9400 support zone, 2011 low, in mind medium term.
"The break below 1.01 support on May 9 had led to an impulsive decline while suggesting an increased risk the pair is transitioning away from the broad consolidation phase to a renewed bear trend" the bank added.
For the short term, "given the relevance of .9700/.9580 support area – includes the 2012 low, some consolidation seems likely particularly as momentum studies are reaching an oversold extreme" JPMorgan said.
"Until a break back above the 1.0115/1.0220 resistance – and recent breakdown zone – the downside risks should remain intact" JPMorgan said, with a target of .9400 support zone, 2011 low, in mind medium term.