AUD / USD faces some near-term consolidation mood ahead of a potential lead to mid-0.7400 in the coming weeks, FX strategists at UOB Group have suggested.
24 Hour View: âYesterday we pointed out that the AUD ‘is likely to advance although it may not be able to maintain a position above major resistance at 0.7405’. We added, “The next resistance at 0.7450 should not come into play.” The AUD then rose to 0.7427 before closing on a firm note at 0.7416 (+ 0.48%). The lead is deeply overbought and the AUD is unlikely to strengthen further. For today, the AUD is more likely to trade between 0.7385 and 0.7430. “
Next 1 to 3 weeks: âWe detected the strengthening of the bullish momentum last Friday (08 October, spot 0.7310) and since then we have had a positive view of the AUD. As the AUD rose sharply, we pointed out yesterday (October 14th, spot at 0.7380) that â0.7405 seems to be within reach and a breakout of this level would pave the way for further gains in the AUD around 0.7450 â. The AUD then hit a high of 0.7427. There is no change in our view although the AUD might first consolidate for a few days before heading towards 0.7450. On the downside, a break of âsolid supportâ at 0.7350 (level was 0.7325 yesterday) would indicate that the current positive phase has ended. “