AUD/USD upside alleviated below 0.7530 – UOB

In view of the research team at UOB Group, AUD/USD could lose upside momentum on a close below 0.7530.

Key Quotes

“While the bullish phase that started about 2 weeks ago is still intact (see FX Insights on 5/7/16), upward momentum is clearly waning and the ‘bearish outside day’ last Friday does not bode well for those who are bullish AUD”.

“However, confirmation of a short-term top is only upon a move below 0.7530 (and the start of a deeper pull-back towards 0.7455)”.

“As highlighted in previous updates, those who are long should look to book profit on any approach to 0.7700, ahead of the major 0.7720 level”.