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28 Aug 2013
Flash: AUD/USD downtrend remains in place – ANZ
FXstreet.com (New York) - Once again, the downtrend remains firmly in place – last week’s AUD/USD failure to breach 0.9250 and the swift slide below 0.9000 underscores the corrective nature of rebounds, suggests Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“Any further rebounds could struggle in the 0.9100-25 area. Such minimal rebounds, or a close below 0.8925, could even trigger an early return to the downtrend (so much for hopes for a standard squeeze to 0.9500) and slippage towards the 0.8550-0.8675 target area.”
“Even if rebounds do occur, they will still be seen as selling opportunities. Despite apparently supportive momentum (RSI especially), the failure to breach minimal resistance levels suggests that momentum is merely signaling that the downtrend is mature.”
“It may be at risk of a turn, but with rebounds being so contained, the dominance of the downtrend is being underscored.
This suggests that further slippage could force an early test of 0.8550 0.8675.”
Key quotes
“Any further rebounds could struggle in the 0.9100-25 area. Such minimal rebounds, or a close below 0.8925, could even trigger an early return to the downtrend (so much for hopes for a standard squeeze to 0.9500) and slippage towards the 0.8550-0.8675 target area.”
“Even if rebounds do occur, they will still be seen as selling opportunities. Despite apparently supportive momentum (RSI especially), the failure to breach minimal resistance levels suggests that momentum is merely signaling that the downtrend is mature.”
“It may be at risk of a turn, but with rebounds being so contained, the dominance of the downtrend is being underscored.
This suggests that further slippage could force an early test of 0.8550 0.8675.”