AUD/USD room for a test of 0.7420 – UOB

The Aussie dollar remains vulnerable to a potential test of the 0.7420 area, according to the research team at UOB Group.

Key Quotes

“After the sharp drop in recent days, the down-move appears to have stabilized as AUD traded in a narrow 0.7451/0.7496 range yesterday. The consolidation phase appears incomplete and further sideway trading is expected for today”.

“As highlighted yesterday, despite the over-extended down move, the current weakness in AUD has room to extend further to 0.7420 (the next support is close-by at 0.7390). Stop-loss remains unchanged at 0.7560 for now even though on a shorter-term note, 0.7510 is already a strong resistance”.