AUD/USD now looks to a test of 0.7720 – UOB

The upside in the Aussie dollar remains firm and could attempt a visit of the 0.7720 area, according to analysts at UOB Group.

Key Quotes

“The bullish phase that started last Tuesday has exceeded not only the immediate 0.7600 target but also the post-Brexit high of 0.7650 (overnight high of 0.7658)”.

“The rally appears to have enough momentum to extend further and the next significant resistance is at the early May high of 0.7720 (prior to RBA’s rate cut)”.

“This is a major level and is expected to attract strong selling interest and as such, those who are long from last week may like to square at least half of their long on any approach to 0.7700. Stop-loss is adjusted higher to 0.7530 from 0.7440”.