Various commodity indices are hovering at important supports. Although they look stable for the time being, a break below highlighted levels would complete larger bearish formations. In such an environment, we cannot rule out the risk of a further USD bid.
AUD/USD risks a dip lower in range towards 1.0440/80 and Cable is completing a larger bearish pattern formed over the past five months with initial targets at 1.5940/70, a break below which opens 1.5660. On TRENDS II (on Barclays Capital Live), the bearish focus for the Heatmap has shifted from USD/CHF to GBP/USD and this also speaks to the bearish potential of GBP/CHF itself for a push towards the five-month channel base near 1.3300.
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