AUD/USD bullish above 0.7400 – UOB

The research team at UOB Group expects the Aussie dollar to accelerate its gains on a close above the 0.7400 handle.

Key Quotes

“While the support indicated at 0.7290 held as expected (low of 0.7316), the subsequent up-move did not threaten the 0.7410 resistance. Upward momentum is showing signs of slowing down but another attempt towards 0.7410 cannot be ruled out just yet. Only a move back below 0.7330 would indicate that the immediate upward pressure has eased”.

“As highlighted yesterday, while the undertone for AUD is still positive, shorter-term indicators are overbought and in order for the current neutral outlook to shift to bullish, AUD has to close above the key 0.7400 resistance (next resistance at 0.7480). Support is at 0.7315 but only a break below 0.7260 would indicate that a short-term top is in place.