Further consolidation likely in AUD/USD for the time being – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note price action in AUD/USD is now seen within the 0.6865-0.7055 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that AUD could rise to 0.7000 first before the risk of a pullback increases. We added, ‘The major resistance at 0.7055 is not expected to come under threat’. AUD soared briefly to 0.7030, dropped to 0.6922 before ending the day at 0.6985 (+0.27%). We view the price actions as part of a broad consolidation range and expect AUD to trade between 0.6930 and 0.7015 today.”

Next 1-3 weeks: “Our view from one week ago (08 Feb, spot at 0.6960) is still valid. As highlighted, AUD is in a consolidation phase and it is likely to trade between 0.6865 and 0.7055 for now.”

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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