AUD/USD points to further gains – UOB

The research team at UOB Group believes the Aussie dollar could extend its march north after breaking above the 0.7400 handle.

Key Quotes

“As highlighted in recent updates, 0.7400 is a key resistance and only a daily closing above this level would shift the 3-week neutral phase to bullish. AUD broke above this level yesterday and surged to an overnight high of 0.7465”.

“The strong daily closing suggests that further AUD strength is likely in the coming days even though overbought short-term indicators could lead to a consolidation that may last for a couple of days”.

“Overall, we are anticipating a break above the 0.7480 resistance for a move to 0.7545. Support is at 0.7365 but only a move back below 0.7315 would indicate that the bullish expectation is wrong”.