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Dec 08 - 10:55 AM

AUD/USD: Downside Risk Intact While Below 0.7371; What's The Trade? - BofA

By eFXdata  —  Dec 08 - 09:30 AM

Bank of America Global Research discusses AUD/USD technical outlook and adopts a bearish bias Into Q1'22.

"We showed AUD/USD was on head and shoulders top watch. \We said if spot were to start trading below .7150 then it would be breaking below the neckline of the pattern and confirming a top. Price action has done this and risk to the downside have increased. We think this pattern aligns well with the macro technical risks shown below. We think downside risk can persist while spot is trading below .7371," BofA notes. 

"To express a bearish AUD/USD view we buy a 3m .69/.65 put spread for 74 USD pips ( vol: 10.74%/12.32%, expiry March 4, 2022)," BofA adds. 

Source:
BofA Global Research

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