FX Strategists at UOB Group believe the bearish phase around the Aussie Dollar could be drawing to a close.
Key Quotes
24-hour view: “Against our expectation for further strength, AUD traded sideways yesterday within a range of 0.7397/0.7443. The consolidation phase appears incomplete and further range trading is expected from here, likely between 0.7390 and 0.7440″.
Next 1-3 weeks: “While we highlighted in the recent updates that the bearish phase in AUD is “approaching oversold levels” and indicated that any “weakness is likely limited to 0.7330, 0.7300″, the strong rally last Friday came as a surprise (AUD gained +0.83% and closed at 0.7439). However, the ‘stop-loss’ level at 0.7455 is still intact and only a break of this level would confirm an end to the current bearish phase. This scenario appears to be likely unless AUD can move and stay below 0.7375 within these 1 to 2 days”.
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