AUD/USD bullish, could test 0.7850 – UOB

FX Strategists at UOB Group have shifted their outlook on the Aussie Dollar to bullish, allowing a potential test of the mid-0.7800s in the near term.

Key Quotes

“While we expected a higher AUD in the past few days, the pace of the up-move and the ease of which the major weekly trend-line resistance at 0.7710/15 was taken out comes as a surprise”.

“From here, a break above the year-to-date high at 0.7750 seems likely and this could lead to a rapid rise to the 2016 high of 0.7850 (with ‘intervening’ resistance at 0.7778)”.

“In order to maintain the bullish momentum, a breach of 0.7670 is enough to indicate that the move above the trend-line is a ‘false break’. Those looking to enter long may use the current level of 0.7730 as entry level with a stop-loss at 0.7670”.