AUD/USD downside exhausted? – UOB

The research tem at UOB Group believes there is not much room for AUD/USD to extend lower in the near term.

Key Quotes

“USD did not perform as well against the AUD compared to other major currency pairs. The modest decline in AUD to a low 0.7476 suggests that the current consolidation phase is still intact”.

“After dropping to a low of 0.7443 last Tuesday (13/9/16), AUD has rebounded and traded mostly sideways. Downward momentum has eased and unless AUD can move clearly below 0.7460 within these 1 to 2 days, the odds for the current bearish phase to extend lower to 0.7420 would diminish quickly. Stop-loss remains unchanged at 0.7560”.