AUD/USD could re-test 0.7950 – UOB

Pablo Piovano FXStreet

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”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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