Bank of America Merrill Lynch technical strategy team believes that it’s time to change your thinking on AUD/USD.
“Evidence says that the medium and potentially long term downtrend is drawing to a close. The completing impulsive declines into multiple channel supports, bullish momentum divergences and yesterday’s massive hammer formation is a setup that is very similar to the November 2014 low in Gold,” BofA notes.
“While more needs to be seen, this is a market poised to run towards 0.8250 and potentially beyond,” BofA argues.
“We will be writing more about this in the days and weeks ahead identifying upside targets and key resistance levels, but right now shorts need to start covering,” BofA advises.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
