AUD/USD tough resistance emerges at 0.7980

FX Strategists at UOB Group, expects the pair’s upside to find strong resistance in the 0.7980 region.

Key Quotes

24-hour view: “We indicated yesterday that while extension higher is likely, “a sustained move above 0.7955 is not expected”. AUD briefly touched a high of 0.7962 but the subsequent sharp drop from the top came as a surprise. The decline appears to have scope to extend lower to 0.7855/60 but a clear break below this level is not expected for now (next support is at 0.7830). Resistance is at 0.7905 followed by 0.7935. The high of 0.7962 is not expected to come into the picture”.

Next 1-3 weeks: “We turned neutral on AUD yesterday and were of the view that the immediate upward pressure could carry it higher but the 0.7980 level is expected to offer solid resistance. AUD hit a high of 0.7962 but the up-move was quickly reversed. From here, as long as 0.7850 is intact, another attempt to test 0.7980 is not ruled out even though the odds for such a move have diminished after the sharp pullback yesterday. A clear move back below 0.7850 would increase the risk of a break of the major support near 0.7805 (rising daily trend-line support which coincides with the 0.7806 low seen earlier this week)”.

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