6 Jun 2014
AUD/USD; Into the “fifth wave” - ANZ
FXStreet (Guatemala) - Tim Riddell, Head of Global Markets Research at ANZ explained that rebounds off the horizontal support at 0.9200 have failed to provide an anticipated last hoorah (fifth wave) spike towards the 0.9550-85 area in AUD/USD.
Key Quotes:
“Such a spike is now looking particularly unlikely, even though it should not be ruled out”.
“Recent price action may not be dynamic, but it is indicative of a cyclical rally having completed at 0.9460-65. The 0.9300-30 area should cap interim rebounds and a fall below 0.9200 should open a slide to the 0.9050-80 area”.
“The broad technical theme is seen as range defining, in which the risk of a full retest of the 0.8650-0.8800 area remains high. Any sign of acceleration in the current pullback could therefore trigger such a slide”.
Key Quotes:
“Such a spike is now looking particularly unlikely, even though it should not be ruled out”.
“Recent price action may not be dynamic, but it is indicative of a cyclical rally having completed at 0.9460-65. The 0.9300-30 area should cap interim rebounds and a fall below 0.9200 should open a slide to the 0.9050-80 area”.
“The broad technical theme is seen as range defining, in which the risk of a full retest of the 0.8650-0.8800 area remains high. Any sign of acceleration in the current pullback could therefore trigger such a slide”.