AUD/USD: Selling pressure looks diminished - UOB

FXStreet reports that in the opinion of FX Strategists at UOB Group, the downward pressure in AUD/USD seems to have lost impulse.

24-hour view: “Our view for AUD yesterday was that ‘a break of the major support at 0.7625 would not be surprising but AUD is unlikely able to maintain a foothold below the next support at 0.7600’. While AUD subsequently breached 0.7625 and dropped to 0.7621, the swift bounce from the low came as a surprise (high has been 0.7726). The rapid rebound appears to be overdone and further sustained advance in AUD is unlikely. AUD is more likely to consolidate and trade within a 0.7660/0.7740 range.”

Next 1-3 weeks: “While AUD breached the 0.7625 level, it rebounded strongly after touching 0.7621. Downward momentum has waned and a break of 0.7740 (no change in ‘strong resistance’ level) would indicate that the current downside risk has dissipated. Barring a sudden surge in downward momentum within these 1 to 2 days, a break of 0.7740 would not be surprising.”