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AUD/USD seen extending the upward momentum on a breakout of the 0.7345 level, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to consolidate within a 0.7245/0.7305 range was incorrect as it popped to a high of 0.7325 before ending the day on a firm note at 0.7303 (+0.27%). Upward momentum has improved, albeit not by much. There is room for AUD to move higher but the less than robust momentum suggests that a break of the major resistance at 0.7345 is unlikely. Support is at 0.7285 followed by 0.7265.”

Next 1-3 weeks: “There is not much to add to our latest narrative from last Thursday (17 Nov, spot at 0.7320). As highlighted, odds for further AUD strength would diminish unless AUD breaks the major resistance at 0.7345 soon. Looking ahead, a break of this rather strong level could potentially lead to a rapid rise towards 0.7380. On the downside, a break of 0.7245 (no change in ‘strong support’ level) would indicate that AUD is not ready to move higher just yet.”

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