JP Morgan: AUD/USD outlook
Analysts at JP Morgan are bearish on AUD/USD and think that the next important target area for the pair lies at $0.8870/0.8770 (the channel support from the 2011 cycle high, 76.4% retracement of the rally from the 2010 low, 100-month MA).
In their view, one may expect a greater correction up from this zone as technical indicators show divergence and oversold conditions.
If Aussie breaks above $0.9440, it will get chance to rise to $0.9600/65 area (38.2% retracement from April) where the bulls will meet strong resistance.
Chart. Weekly AUD/USD