AUD/USD faces strong resistance around 0.7820 – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, the upside momentum in AUD/USD is seen facing a tough barrier around the 0.7820 region in the next weeks.

Key Quotes

24-hour view: “We did not anticipate the sharp but short-lived plunge in AUD to 0.7701 and the subsequent swing back up to 0.7788. The rapid rise appears to be overstretched but there is room for further advance in AUD. That said, the major resistance at 0.7820 is likely out of reach (0.7800 is already quite a strong level). Support is at 0.7760 followed by 0.7745.”

Next 1-3 weeks: “We have held the same view since Monday (03 May, spot at 0.7725) where we indicated that the outlook is mixed, and we expected AUD to ‘trade within a 0.7660/0.7785 range’. After trading within the range for a few days, AUD edged above the top of the expected range yesterday (high of 0.7788). Shorter-term upward momentum is beginning to improve and AUD is expected to trade with an upward bias from here. However, the April’s top near 0.7820 is expected to offer solid resistance. Overall, only a break of 0.7720 (‘strong support’ level) would indicate that the buildup in momentum has dissipated.”

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.