AUD/USD further weakness unlikely – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group believe extra downside in the pair seems to have lost momentum in the near term.

Key Quotes

“AUD touched a ‘fresh low’ of 0.7532 yesterday before rebounding strongly and in the process, registered an outside day”.

“We have highlighted in recent updates that despite the ‘over-extended’ decline, there is room for further weakness towards the rising weekly trendline support at 0.7475/80”.

“The strong bounce yesterday has clearly diminished the odds for further AUD weakness even though only a break of 0.7640 would indicate that the current bearish phase has ended”.

“In the meanwhile, another leg lower towards 0.7475/80 is not ruled out but AUD has to move and stay below 0.7530 within this 1-2 days or downward momentum would wane quickly”.

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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