FXStreet (Bali) - Niall O'Connor, FX Strategist at JPMorgan, notes that the .9330/20 support zone in AUD/USD remains key, adding that a break below would be the first sign that a deeper corrective phase is finally due.
"While the setup for AUD/USD has been resilient of late especially given last week’s reversal from the short term range lows near .9330/20, the pair continues to struggle to extend."
"In this regard, the action highlights the importance of the .9506/.9545 resistance zone which includes the recent range highs, the 76.4% retracement of the decline from the October ’13 high and the November peak."
"Only sustained breaks through this area would suggest a closer test of the .9758 October peak. A violation of the .9330/20 support zone and short term range lows would be the first sign that a deeper corrective phase is finally due and another sign that the broad USD picture is improving."