AUD/USD extra gains expected above 0.7350 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is seen gaining extra momentum on a close above 0.7350.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the bias is tilted to the downside but any weakness is likely limited to a test of the 0.7235 support’. However, AUD rebounded strongly after touching a low of 0.7254 before extending its gains earlier this morning. Upward momentum is beginning to improve and AUD could edge above the major resistance at 0.7350. That said, a sustained advance above this level is unlikely (next resistance is at 0.7375). Support is at 0.7300 followed by 0.7275.”
Next 1-3 weeks: “We have held the same view since last Friday (11 Sep, spot at 0.7265) wherein AUD ‘is in a consolidation phase and could trade between 0.7200 and 0.7350 for some time’. After a week, upward momentum is showing tentative sign of picking up. While a move above 0.7350 would not be surprising, AUD has to close above this major resistance before further gains towards 0.7400 can be expected. At this stage, the prospect for such a move is not high but it would continue to increase as long as AUD does not move below 0.7250 within these few days.”
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.

















