Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggested the upside momentum could push AUD/USD to the 0.7620 region.

Key Quotes

“… when AUD/USD was trading at 0.7375, we highlighted that ‘the overall risk appears to be tilted to the upside but any advance in AUD/USD is expected to face solid resistance at 0.7430 and 0.7500’. Two weeks ago, AUD/USD surged and cracked both resistance levels with ease. Yesterday (04 Apr 2022), AUD/USD rose slightly above last Oct’s top of 0.7555 and touched a 5-month high of 0.7557.”

“Shorter-term upward momentum has built-up rapidly and this coupled with the break of strong resistance levels suggests AUD/USD is likely to advance further. The next resistance level of note is near 0.7620, the 61.8% retracement of the decline from last Feb’s high of 0.8007 to the Jan’s low of 0.6990 (some minor resistance can be expected at 0.7600). Overall, the upside risk for AUD/USD remains intact. Key support is at the 55-week exponential moving average (currently at 0.7330). On a shorter-term note, 0.7400 is already quite a strong support level. Looking ahead, if AUD/USD closes above 0.7620 on a weekly basis, it would greatly increase the chance for a move to 0.7720.”