AUD/USD faces the next resistance at 0.7960 – UOB

AUD/USD is seen climbing to the 0.7960 region in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while conditions remain overbought, there is room for AUD to stage another push higher even though the major resistance at 0.7960 is likely out of reach’. We added, ‘there is another resistance at 0.7940’. AUD subsequently rose to 0.7935. Conditions remain overbought but there is still chance for AUD to test 0.7940. The major resistance at 0.7960 is likely out of reach. On the downside, a break of 0.7870 would indicate the current upward pressure has eased (minor support is at 0.7885).”

Next 1-3 weeks: “We have held a positive view in AUD for more than 2 weeks now. In our latest narrative from Monday (22 Feb, spot at 0.7885), we noted that ‘strong boost in momentum suggests further AUD strength’ and that ‘the next resistance is at 0.7960’. There is no change in our view for now even though overbought shorter-term conditions could slow the pace of any further advance. Looking ahead, the next resistance above 0.7960 is at 0.8000. On the downside, a break 0.7825 (no change in ‘strong support’ level) would indicate that the positive phase in AUD has run its course.”