From Mr. Niall: "The weakness over the past week suggests a deteriorating technical setup and growing risk of a deeper corrective phase at least over the short term timeframe. This is in line with the recent failure against important resistance in the 1.06/1.0650 zone for AUDUSD which includes the August-September highs (and potential double top)."
JPMorgan Strategist adds that holding or not the key 1.0167 September low "should define the short term range lows." As long as below the 1.0405/1.0475 resistance levels, "the short term downside risks remain intact" he says.
"Violations of the September low confirm a deeper corrective phase into the .9975/.9825 zone (61.8% and 76.4% retracements from the June low). But we would expect prices to base in this area given our view that the medium term consolidation phase remains very much intact" Mr. Niall concludes.