United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight AUD/USD’s sharp rally to 0.7180 and close near 0.7170, noting the move looks stretched but still lacks signs of a pause. Intraday, they see scope to edge above 0.7180 while 0.7200 caps, and on a 1–3 week horizon they expect AUD strength to persist toward that major resistance as long as 0.7105 holds.
Strong momentum toward key barrier
“24-HOUR VIEW: We expected AUD to “trade sideways between 0.7105 and 0.7135” last Friday. We were incorrect. Instead of trading sideways, AUD soared to 0.7180 before settling at 0.7169 (+0.78%). The sharp rise appears overdone, but there are no signs of a pause just yet. Today, AUD could edge above 0.7180. The significant resistance at 0.7200 is unlikely to come into view. Support is at 0.7150; a breach of 0.7140 would indicate that the immediate upward pressure has eased.”
“1-3 WEEKS VIEW: Last Thursday (19 Aug, spot at 0.7125), we highlighted that “while further AUD strength is not ruled out, it must first break clearly above 0.7150 before a move to 0.7175 can be expected.” On Friday, AUD broke decisively above 0.7150, soaring to a high of 0.7180. AUD strength remains intact, and the level to watch is 0.7200. Note that this level is a major resistance. To keep the momentum going, AUD must hold above 0.7105 (‘strong support’ level was at 0.7080 last Friday).”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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