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The immediate bias for the Aussie Dollar is for a test of the 0.7600 area vs. the buck in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD reversed its initial sharp decline as it surged strongly after touching a low of 0.7477. From here, a move above the overnight high of 0.7584 would not be surprising but any further advance is unlikely to have enough momentum to overcome last week’s top at 0.7605. Support is at 0.7550 but the stronger level is at 0.7520. The 0.7477 low is not expected to come into the picture for now”.

Next 1-3 weeks: “The neutral phase that started in mid-May is still intact as AUD traded choppily within a broad sideway range since then. While upward momentum has improved with the strong rebound yesterday, it is too early to expect the start of a bullish phase. That said, the 0.7477 low registered yesterday is acting as a solid support now and as long as this level is intact, the immediate bias is for a test of the strong 0.7605 resistance. Higher up, only a break of 0.7645 would indicate that AUD is ready for a sustained up-move”.