AUD/USD major resistance lines up at 0.7760 – UOB

Strategists at UOB Group noted AUD/USD faces strong resistance in the 0.7760 area in the near term.

Key Quotes

“AUD broke above the major 0.7705/10 resistance during late NY session and surged to a high of 0.7728 in Sydney earlier. The up-move is accompanied by strong momentum and extension towards 0.7735/40 seems likely (next resistance at 0.7760). Only a move back below 0.7690 would indicate that the upward pressure has eased”.

“While the move above 0.7705/10 (high of 0.7728 at time of writing) indicates that the underlying strength for AUD has improved, strong resistances are stacked closely together at 0.7735 and 0.7760 (high in September and August respectively). These levels have offered strong resistances previously and are expected to continue to frustrate AUD bulls. That said, in the next few days, this pair is expected to stay underpinned unless there is a move back below 0.7640”.

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