AUD/USD now targets 0.7825 near term – UOB

The upbeat momentum around the Aussie Dollar could extend to the 0.7825 level in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

“We have held the same view since last Thursday (05 Apr, 0.7715) that “the immediate bias is for a probe of the top of the 0.7630/0.7770 consolidation range”.

“After several days of trading sideways, AUD staged a surprisingly strong up-move and hit an overnight high of 0.7768. Instead of just a ‘probe’, the vastly improved momentum suggests that AUD has scope to extend its gains towards the next strong resistance at 0.7825”.

“However, the current price action is viewed as a ‘corrective rebound’ and 0.7825 may not be easy to break and may not come into the picture so soon. On a shorter-term note, 0.7795/00 is already a strong resistance and this level may temporarily cap the advance in AUD. Overall, only a move back below 0.7695 would indicate that the immediate upward pressure has eased”.