AUD/USD extra gains awaits above 0.7700 – UOB

FX Strategists at UOB Group expects the Aussie Dollar to pick up further pace after clearing the 0.7700 handle.

Key Quotes

“We turned bullish late last week when AUD moved clearly above 0.7600, anticipating a break above the major resistance at 0.7700 (weekly trend-line)”.

“The failure to move clearly above 0.7700 (high has been 0.7696) coupled with subsequent prolonged consolidation has resulted in a rapid loss in upward momentum”.

“In order to hold on to the current bullish momentum, AUD need to ‘punch above’ 0.7700 soon or the odds for further AUD strength would continue to diminish”.

“To put it another way, the bullish phase may come to a premature end unless we see a move above 0.7700 within these 1 to 2 days”.

“Alternatively, a move below the trailing-stop at 0.7595 would also indicate that a short-term top is in place (indicating that AUD has moved into a correction/consolidation phase)”.