AUD/USD losing upside momentum – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group stay bullish on the Aussie Dollar, although the upside momentum could be running out of steam.

Key Quotes

“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)”.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7565

18% Bullish
82% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 0.7500

15% Bullish
77% Bearish
8% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.7378

10% Bullish
81% Bearish
10% Sideways

Bias Bearish

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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