AUD/USD further gains appear limited – UOB

In opinion of FX Strategists at UOB Group, the likeliness of further gains in the pair seems to have lost some traction as of late.

Key Quotes

“AUD traded sideways as expected but the weak daily closing suggests a negative undertone. That said, 0.7585/90 is a strong support and any further decline is expected to struggle to move below this level. All in, AUD has to reclaim 0.7655/60 (major resistance is still at 0.7700) or the short-term bias is tilted to the downside”.

“AUD desperately need to ‘punch above’ the major 0.7700 resistance or the risk of short-term top would increase rapidly. In other words, the bullish phase that started last Friday may come to a premature end unless there is a move above 0.7700 within these 1 to 2 days. Alternatively, a break below 0.7595 would also indicate that a short-term top is in place”.