AUD/USD bullish, set sales for 0.7900 – UOB

In opinion of FX Strategists at UOB Group, the Aussie Dollar could appreciate towards the 0.7900 handle in the next 1-3 weeks.

Key Quotes

“While we expected AUD to register a fresh year-to-date high, the sharp acceleration higher comes as a surprise. The rapid rise appears incomplete even though the next major resistance at 0.7880 is likely out of reach for now (0.7850/55 is already a strong level). Support is at 0.7795 followed by 0.7760. The latter level is expected to be strong enough to hold any intraday pull-back”.

“The shift to a bullish stance last Friday was timely. The high registered in NY was 0.7835, shy of the target at 0.7850. Based on the strong and impulsive rally, a break above 0.7850 would not be surprising and would shift the focus to 0.7900. Those who are long from 0.7730 last Friday may like to exit half of their position at 0.7900. Stop-loss is adjusted higher to 0.7730”.