Forex Flash: Stay long EUR/AUD - JPMorgan

FXstreet.com (Barcelona) - AUD/NZD is approaching key support at 1.2100/1.1933 (July‘10/Oct’09 lows), level where, according to Niall O'Connor, currency strategist at JPMorgan, "some retracement to the one-way decline over the past several weeks can develop", adding that the setup "is also in line with the oversold and diverging momentum setup on a daily and weekly basis."

Nial adds: "While a retracement is also consistent with the recovery in AUD/USD from the key support (1.0225/55 area), note that AUD remains quite mixed on the crosses. In this regard, we highlight the potential for a continuation of the base breakout in EUR/AUD. Note that we added to our long trade recommendation given this week’s pullback into key support near 1.2900/1.2875."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS