AUD/USD extra gains seen above 0.7350/55 – UOB

In opinion of strategists at UOB Group, further upside in AUD/USD awaits above the mid-0.7300s in the next 1-3 weeks.

Key Quotes

“AUD hit a low of 0.7160 late last month but has since rebounded strongly”.

“The recovery is more than resilient than expected and is currently approaching the major 0.7350/55 resistance (falling trend-line connecting the highs of 0.7778 and 0.7525)”.

“A clear break above 0.7350/55 would indicate the start of a sustained up-move with an immediate target of 0.7430 followed by the early December high of 0.7525 (minor resistance at 0.7395)”.

“Overall, the current constructive price action is expected to stay intact unless there is a drop back below the strong short-term support at 0.7250”.