AUD/USD bearish below 0.7145/50 – UOB

According to the research team at UOB Group, further pullbacks lie ahead for the Aussie dollar on a close below the 0.7145/50 band.

Key Quotes

“The 'rebound target' indicated at 0.7260 last Friday was not met as AUD dropped quickly after hitting a high of 0.7235. From here, a retest of last week's 0.7145 low would not be surprising but at this stage, a sustained move below this level is unlikely”.

“Despite oversold conditions and waning downward momentum, the recent short-term rebound in AUD was not sustained. From here, a clear break (say a daily closing below) the recent low of 0.7145/50 would indicate that the bearish trend in AUD has resumed (immediate target at 0.7100). Only a move back above 0.7235 would indicate that the downward pressure has eased”.