FXStreet (Barcelona) – Niall O’Connor, FX & commodity technical strategist at J.P.Morgan, sees the backdrop for AUD/USD and NZD/USD as remaining bearish for a test of news lows.
Key Quotes
“Commodity currencies maintain the underperformance risk as the early-week retracements failed to extend through key levels. In this regard, both AUD/USD and NZD/USD continue to look vulnerable to new lows.”
“The .7533 April low for AUD/USD is the main focus with breaks confirming the medium term downtrend is back on track for an extension into .73/.72 zone (76.4% retrace from 2008).”
“The backdrop for NZD/USD remains bearish as the earlyweek retracement failed at key initial resistance levels. The .6870/75 zone which includes the 50% retracement of the rally from the 2009 low is the next important focus.”
(Market News Provided by FXstreet)