AUD/USD now set eyes on 0.7800 and above – UOB

In view of FX Strategists at UOB Group, the Aussie Dollar faces strong resistance in the area beyond 0.7800 the figure in the near term.

Key Quotes

24-hour view: “While we highlighted yesterday that the “immediate bias is for a probe lower towards the bottom of the expected 0.7745/0.7790 range”, the sharp and rapid bounce from a low of 0.7745 that hit an overnight high of 0.7797 was not exactly expected. Upward momentum is not strong but the rebound appears to have scope to extend higher towards last week’s 0.7810 top. However, the next level at 0.7825 is a major resistance and is unlikely to yield so easily. Support is at 0.7770 followed by the low of 0.7745”.

Next 1-3 weeks: “After trading in a quiet manner for a couple of days, AUD registered an ‘outside day’ yesterday and closed on a positive note. As highlighted yesterday, another ‘up-leg’ is not ruled but 0.7825 is a major resistance and is unlikely to yield so easily. However, a clear break of this level would shift the focus towards the next resistance at 0.7865. Overall, in order to maintain the current fledgling momentum, AUD has to make a run for the upside soon or the odds for a stronger rebound would diminish further. On the downside, a break of the ‘key support’ at 0.7720 would indicate that the current mild upward pressure has eased. On a shorter-term note, 0.7745 is already a strong level”.