AUD/USD: The continuation of the uptrend could lose momentum – UOB

Pablo Piovano FXStreet

In the opinion of FX Strategists at UOB Group Quek Ser Leang and Peter Chia, bets for further upside in AUD/USD seems to be dwindling.

Key Quotes

24-hour view: “We highlighted last Friday that ‘further AUD strength appears likely even though a sustained rise above 0.7300 is unlikely’. AUD subsequently rose to 0.7283 staging a surprising sharp pullback to a low of 0.7202 during NY session. Upward momentum has dissipated and the current movement is likely part of a consolidation. For today, AUD is likely to trade within a range of 0.7190/0.7260.”

Next 1-3 weeks: “We highlighted last Friday that AUD could strengthen further and we indicated that the next resistance is at 0.7340. AUD subsequently eked out a fresh high of 0.7283 before falling sharply to 0.7202. Upward momentum has been dented and the prospect for further AUD strength has diminished. However, only a breach of 0.7160 (we are lowering the ‘strong support’ level from 0.7190) would indicate that the AUD strength that started two weeks ago has run its course.”

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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