AUD/USD: Overbought Condition S/T; A Break Below 0.7870 Key – UOB


What is the outlook for AUD/USD?

Here is their view, courtesy of eFXdata:

UOB Research flags a scope for a downside correction in AUD/USD on overbought conditions.

“We have held a positive view in AUD for more than 2 weeks now…We noted that “strong boost in momentum suggests further AUD strength” and that “the next resistance is at 0.7960,” UOB notes.

Overbought shorter-term conditions could slow the pace of advance…On the downside, a break at  0.7870 (‘strong support’ level previously at 0.7825) would indicate that the positive phase in AUD has run its course,” UOB adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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