AUD/USD could re-test 0.7950 – UOB
|The upside in the Aussie Dollar could extend to the mid-0.7900s in the next 1-3 weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “The sharp swing higher in AUD last Friday was unexpected. The rally appears to be running ahead of itself but with no signs of weakness just yet, a move above 0.7900 is not ruled out. At this stage, a sustained move above this level is not expected (next resistance is at 0.7930). Support is at 0.7855 followed by 0.7825. The latter level is likely strong enough to hold any intraday pullback”.
“We shifted from a bearish to neutral stance last Friday (13 Oct, spot at 0.7825) and were of the view that there is room for AUD to “probe higher towards the top of the expected 0.7770/0.7900 consolidation range”. However, the rapid pace of advance that resulted in a high of 0.7898 was not exactly expected. The immediate pressure has shifted to the upside but at this stage, we view any up-move as a short term strength that is unlikely to be sustained. That said, only a move back below 0.7800 would indicate that the short-term upward pressure has eased. Until then, the current strong recovery has scope to extend higher to 0.7950”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.