The upside momentum in AUD/USD remains firm and faces a tough resistance in the 0.7795 level in the short-term, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could edge above 0.7730 but the next resistance at 0.7765 is likely out of reach’. Our view was not wrong as AUD rose to an overnight high of 0.7740. Further advance is not ruled out but AUD appears to be struggling to maintain its momentum. That said, there is scope for AUD to test 0.7765 first before a pullback can be expected. For today, a break of the next resistance at 0.7795 would come as a surprise. On the downside, a break of 0.7700 would indicate the current upward pressure has eased.”
Next 1-3 weeks: “We noted yesterday (09 Feb, spot at 0.7705) that ‘a break of 0.7730 would indicate that the current AUD strength could extend to 0.7765’. While our view was not wrong, we did not quite anticipate the ease by which AUD cracked 0.7730 (overnight high of 0.7740). Further AUD strength would not be surprising but it is left to be seen if the current advance could extend to the next major resistance at 0.7795. Overall, AUD is expected to trade with an upward bias for now as long as it does not move below 0.7660 (‘strong support’ was at 0.7630 yesterday).”
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