AUD/USD: Next target is now at 0.7760 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD faces strong resistance at the 0.7760 region.

Key Quotes

24-hour view: “AUD surged to a high of 0.7743 last Thursday (31 Dec) before retreating quickly to end the day a tad higher at 0.7693 (+0.09%). The rapid pull-back amid overbought conditions suggests that further AUD strength is unlikely. AUD is more likely to consolidate and trade within a 0.7665/0.7730 range.”

Next 1-3 weeks: “While AUD rose to a fresh high of 0.7743 last Thursday, it retreated quickly to end the day slightly higher at 0.7693 (+0.09%). Further AUD strength is not ruled out but upward momentum is not strong and the pace of any advance is likely to be slow. Overall, there is room for AUD to advance but the next major resistance at 0.7760 is unlikely to come into the picture so soon. On the downside, a break of 0.7630 would indicate the current upward pressure has eased.”