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12 Mar 2013
Forex Flash: AUD/USD 1.0340/75 key zone to move higher - JPM
Following a positive start in Shanghai, AUD/USD has printed fresh 2-week highs at 1.0313 running some stops, though now retraces off those highs last at 1.0286 as Shanghai turns into the negative, down -0.75% at this point, near session lows.
According to John Normand at JP Morgan Global FX Strategy “Last week’s price action for AUD/USD was a clear disappointment,” the analyst says, adding: “Despite holding a number of key support levels amid an oversold and diverging momentum setup, the reversals from Monday’s lows failed to extend above key resistance levels. In turn, the short term setup continues to deteriorate against the USD.”
“The 1.0340/75 zone is the key test for AUD/USD with breaks improving the short term setup,” John concludes.
According to John Normand at JP Morgan Global FX Strategy “Last week’s price action for AUD/USD was a clear disappointment,” the analyst says, adding: “Despite holding a number of key support levels amid an oversold and diverging momentum setup, the reversals from Monday’s lows failed to extend above key resistance levels. In turn, the short term setup continues to deteriorate against the USD.”
“The 1.0340/75 zone is the key test for AUD/USD with breaks improving the short term setup,” John concludes.