- The Australian dollar may halt a recent drop versus the U.S. currency after finding so-called support toward $1.0225, JPMorgan Chase and Co. said citing trading patterns.
- The area from $1.0255 to $1.0225 contains the 38.2 percent Fibonacci retracement of the currency’s advance from last year’s low of 95.82 U.S. cents to $1.0625 on Sept. 14. It also includes the 76.4 percent retracement from the October low of $1.0149, Niall O’Connor, a technical analyst at JPMorgan, wrote today in a note to clients.
- “We continue to see risk of a short-term reprieve to the recent weakness,” he wrote. “We continue to see key resistance at $1.0370/$1.0460 levels with upside breaks confirming a deeper retracement.” Resistance refers to an area on a chart where orders to sell may be clustered.
Aussie May Halt Decline on Fibonacci Support: Technical Analysis