AUD/USD neutral, eyes 0.7740 – UOB

The research team at UOB Group now shifted its outlook on AUD/USD to neutral from bullish, targeting 0.7740.

Key Quotes

“The anticipated AUD strength exceeded our expectation by breaking above the major 0.7675 resistance (high of 0.7695). While further AUD strength seems likely in the days ahead, the current rally appears to be running ahead of itself and a sustained break above 0.7695/00 seems unlikely. From here, allow for a dip to 0.7645/50 but 0.7620 is expected to hold for a retest of 0.7695/00”.

“As highlighted last Friday, the undertone for AUD is positive but only a clear break above 0.7675 would indicate the start of a bullish phase. While the daily closing is not as strong as preferred, the price action suggests a valid ‘break’ and from here, we are targeting a move to 0.7740 followed closely by the August’s peak of 0.7760”.