DislikedThe day chart did a solid stop and reversal at the 100EMA on the day chart. Word from the institutions is the pair will turn bullish. What are you seeing that says short and what is your target?Ignored
0443 GMT [Dow Jones] AUD/USD is going to end the year at parity or better, but it's going to be a rough couple months before its upward climb, says Standard Chartered's head of FX strategy, Callum Henderson. Henderson forecasts a bright economic outlook in Asia and more inflation, both of which will be a boon for AUD in long term. But says risk appetite likely to remain fickle as surge for high risk securities last year has many managers taking 1Q of this year to reorgnaize their portfolios. "We're medium-term bulls and think it (AUD/USD) will end the year above parity, but in the short term there is a risk of even more volatility and more downside given potential policy mistakes and as risk investors are already too long risky positions given the move last year." For the end of 1Q, Callum targets AUD/USD at 0.85, tips 1.02 by end of year. Pair last 0.9005, moving higher on President Obama's pledge to focus on job growth, adding some risk tolerance to market. (GER)
