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11 Sep 2013
Flash: AUD/USD with lots of white space, next target 0.94/0.9450 - Saxo Bank
FXstreet.com (Barcelona) - According to John J Hardy, Head of FX Strategy at Saxo Bank, the AUD/USD has been boosted by plenty of positioning fodder feeding the squeeze.
Technically, the Strategist expect that a clean break of 0.9300 area may produce a new meaningful leg up, noting "there’s lots of white space on the chart above that, perhaps 0.9400/50 is the next zone if something bigger gets underway."
On the contrary, Hardy added that since there are still a large number of investors/traders expecting the squeeze to continue, "hot money may be rather long at this point" Hardy said, thus "if 0.9225/0.9200 fails to hold as support in the near-term, we’ve got a bearish pattern hook that could avert the squeeze scenario" Hardy commented.
Technically, the Strategist expect that a clean break of 0.9300 area may produce a new meaningful leg up, noting "there’s lots of white space on the chart above that, perhaps 0.9400/50 is the next zone if something bigger gets underway."
On the contrary, Hardy added that since there are still a large number of investors/traders expecting the squeeze to continue, "hot money may be rather long at this point" Hardy said, thus "if 0.9225/0.9200 fails to hold as support in the near-term, we’ve got a bearish pattern hook that could avert the squeeze scenario" Hardy commented.