2 Jul 2013
Flash: AUD/USD, bias is for a squeeze to 0.9430/60 - ANZ
FXstreet.com (Barcelona) - Time to start considering buy <a href="http://www.fxstreet.com/technical/currencies-glance/pair.aspx?id=aud/usd">AUD/USD dips in the near term, even if the longer term bias may be to sell into rebounds, notes Tim Riddell, Head of Global Markets Research at ANZ.
Riddell sees a close above 0.9300 as the pre-requisite to allow an anticipated corrective period. However, "after such an extended slide rebounds are likely to be contained with an initial target of 0.9430-60 and then potentially 0.9670-75" Riddell says.
From a risk/reward perspective, Riddell also supports the idea of a rebound, despite likely to be contained. The ANZ Strategist expects "a series of rebounds, rather than a single squeeze, but these should still be considered as corrective" Riddell said. Without losing sight of the long-term profile, Riddell recommends to use rebounds (ideally in 0.9650-75) to rebuild shorts."
Riddell sees a close above 0.9300 as the pre-requisite to allow an anticipated corrective period. However, "after such an extended slide rebounds are likely to be contained with an initial target of 0.9430-60 and then potentially 0.9670-75" Riddell says.
From a risk/reward perspective, Riddell also supports the idea of a rebound, despite likely to be contained. The ANZ Strategist expects "a series of rebounds, rather than a single squeeze, but these should still be considered as corrective" Riddell said. Without losing sight of the long-term profile, Riddell recommends to use rebounds (ideally in 0.9650-75) to rebuild shorts."