AUD/USD losing upside momentum – UOB

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
Avg Forecast 0.7565
0.0%100.0%18.0%0-1001020304050607080901001100
  • 18% Bullish
  • 82% Bearish
  • 0% Sideways
Bias Bearish
1 Month
Avg Forecast 0.7500
100.0%92.0%15.0%01020304050607080901000
  • 15% Bullish
  • 77% Bearish
  • 8% Sideways
Bias Bearish
1 Quarter
Avg Forecast 0.7378
100.0%91.0%10.0%01020304050607080901000
  • 10% Bullish
  • 81% Bearish
  • 10% Sideways
Bias Bearish

 

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