AUD/USD bearish short term, eyes 0.7810 – UOB

FX Strategists at UOB Group remain bearish on the pair, which is now targeting the 0.7870 and 0.7810 area in the next weeks.

Key Quotes

24-hour view: “AUD registered a range of 0.7927/0.7974 yesterday, relatively close to our expected sideway trading range of 0.7925/0.7980. While the weak daily closing suggests increasing downward pressure, any weakness is unlikely to move clearly below last week’s low near 0.7905/10 (next support is at 0.7870). Resistance is at 0.7955 followed by 0.7980”.

Next 1-3 weeks: “We just turned bearish last Friday and the rapid and robust rebound from a low of 0.7908 came as a surprise. Downward momentum has clearly been dented but at this stage, we view the short-term strength as a corrective recovery and not a bullish reversal. That said, those who sold at 0.7930 may like to adjust the stop-loss slightly higher to 0.8010 from 0.7990. The target remains at 0.7870 (followed by 0.7810)”.