AUD/USD risks a visit of 0.7300 – UOB

Pablo Piovano FXStreet

According to FX Strategists at UOB Group, the Aussie Dollar could slip back to the 0.7300 handle in the next weeks.

Key Quotes

24-hour view: “While we expected a lower AUD yesterday, the rapid decline that took out the strong 0.7380 support was not exactly anticipated. The pressure is still clearly on the downside but oversold conditions suggest a slower pace of decline and any weakness could be limited to the next support at 0.7330 (0.7350 is already quite a strong support). Resistance is at 0.7390 followed by 0.7415. The latter level is acting as a very strong resistance level now and at this stage, is expected to be strong enough to cap any intraday rebound”.

Next 1-3 weeks: “We highlighted yesterday that the “upward pressure has eased” and AUD has likely moved into a consolidation phase. The subsequent outsized decline that hit an overnight low of 0.7364 came as a surprise. This level is just above our expected 0.7350/0.7480 consolidation range and in view of the rapid pace of decline; a move below 0.7350 would not be surprising. That said, we are not convinced that the current weakness is the start of a fresh bearish phase even though the current soft patch could extend lower and test the major 0.7300 support. On the upside, only a move above 0.7440 would indicate that the current weakness has stabilized”.

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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