AUD/USD risks a test of 0.7740 – UOB Group

In opinion of FX Strategists at UOB Group, the pair’s outlook stays bearish and could attempt a visit to the 0.7740 area in the next weeks.

Key Quotes

24-hour view: “In line with expectation, AUD traded mostly sideways albeit at a narrower range than anticipated. The consolidation phase appears incomplete and further range trading is expected for today, likely within a 0.7815/0.7870 range”.

Next 1-3 weeks: “AUD traded within narrow ranges last Friday and registered an ‘inside day’. While the bearish phase that started on 22 Sep. is still intact, downward momentum is beginning to wane and the odds for further weakness towards 0.7740 are not high. We have suggested exiting half of short position from 0.7930 at 0.7820 and those with remaining short should look to exit the rest of the position at 0.7740. Stop-loss is lowered to 0.7900 from 0.7930”.