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AUD/USD has managed to separate itself from the 0.70 magnet and to rise to the upside.

The team at Morgan Stanley see more potential for rises:

Here is their view, courtesy of eFXnews:

On the long-term AUD/USD Chart:

“When AUDUSD broke out of the bottom end of the longterm channel at 0.84, a further bearish AUD signal was triggered. We still target 0.65 for the end of next year but the short-term charts below show that there could be some upside in the coming weeks. Our positioning tracker suggests that the market remains short AUD, therefore opening room for a reversal,” MS argues.

AUDUSD long term chart October 2015

On the 2-year AUD/USD Chart:

“AUDUSD has failed to break below the 0.6896 low from early September. We believe that this was a sign that AUDUSD is set to rebound for the time being. We believe that AUDUSD has formed a complete a-wave structure, so the b-wave would take AUDUSD back into the trend channel drawn here. Initial moves above the 0.7300 high are required to keep the momentum,” MS adds.

AUDUSD 2 year Australian dollar forex chart

On the 90-day AUD/USD Chart:

“AUDUSD attempted to make a new low but failed to go below 0.6937. We believe this was the end of a b’ wave, suggesting further upside for AUD, completing the c’ above 0.7273 at least. A move above here opens the way to our tactical trading target of 0.7500. The level is around the middle of the channel shown above,” MS projects.

Australian dollar 90 day chart technical October 2015

As a short-term trade, MS runs a limit order to buy AUD/USD at 0.7020 targeting a move to 0.75.

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