-
Buy A Break In AUD/NZD, Stay Long USD/JPY - BofA Merrill
Across currencies, the USD continues to outperform, notes Bank of America Merrill Lynch. In this environment, BofA is bearish AUD/USD and NZD/USD. "However, we reiterate our view that AUD/USD downside should prove limited, with the confluence of support between 0.7378/0.7331 (14-year channel base and 10m channel base) likely to provide the building blocks for a long-term base and turn higher," BofA argues. "In contrast, NZD/USD has significant downside potential. While 0.7000/0.6955 should hold initially, long term, it could fall to the 200m avg. at 0.6588 and potentially as far as 0.5788/0.5631," BofA adds. Given ... (full story)