AUD/USD bullish, targets 0.7850 – UOB

Analysts at UOB Group have shifted their outlook on the pair to bullish, expecting a test of the mid-0.7800s.

Key Quotes

“AUD exceeded the target indicated at 0.7800 yesterday to touch a high of 0.7827. The strong rally over the last few days is clearly overbought but at this stage, it is too early to expect a pronounced pull-back. It is more likely that AUD will consolidate its strong gains and trade sideways at these higher levels”.

“We just turned bullish yesterday and there is no change to the view. The immediate target is at 0.7850 and the stop-loss remains unchanged at 0.7660 (even though 0.7700 is likely strong enough to hold any short-term pull-back)”.