AUD/USD keeps the upside momentum well and sound – UOB

In opinion of FX Strategists at UOB Group, AUD/USD could push higher and test the 0.7440 area in the short-term horizon.

Key Quotes

24-hour view: “While our view for AUD to advance was correct, we underestimated the upward momentum as it easily cracked the major resistance at 0.7365 (high of 0.7392). Further AUD strength is not ruled out but deeply overbought conditions suggest that any advance is unlikely to break the next major resistance at 0.7440 (there is another resistance at 0.7410). On the downside, a breach of 0.7330 (minor support is at 0.7350) would indicate that the current strong upward pressure has eased.”

Next 1-3 weeks: “We noted the rapid build-up in momentum yesterday and we expected AUD to advance to 0.7365. We did not quiet expect AUD to move above 0.7365 so quickly (high of 0.7392 in NY). Momentum remains strong and AUD could rise towards the next major resistance at 0.7440. The strong upside pressure is intact as long as AUD does not move below 0.7300 (‘strong support’ level was at 0.7210 yesterday).”