FX Strategists at UOB Group stay bullish on the Aussie Dollar, although the upside momentum could be running out of steam.
“We turned bullish about 2 weeks ago when AUD broke above 0.7600. Since then AUD has been caught in a 0.7605/0.7696 range and has been unable to much headway despite overall bullish indications”.
“While the price action appears to be forming a ‘bullish flag’, the rapidly deteriorating upward momentum suggests that time is running out for AUD bulls”.
“Unless there is a clear break above 0.7695/00 soon, the risk of short-term top would grow quickly but confirmation is only upon a break below the current stop-loss at 0.7615 (the overnight low of 0.7618 came very close to this level)”.
“After the prolonged consolidation, a clear break above 0.7695/00 could unleash a rapid acceleration higher towards 0.7775/80 (high in November last year)”.