United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD has slipped into short-term consolidation between 0.7135 and 0.7170 after last week’s sharp rise, but they still regard the broader uptrend as intact.
They highlight 0.7200 as a major resistance level to watch, with strong support at 0.7105 needing to hold to sustain the bullish momentum over the coming weeks
Consolidation within broader uptrend “24-HOUR VIEW: AUD soared to a high of 0.7180 last Friday. Yesterday, when it was at 0.7165, we highlighted the following: “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.” However, instead of edging above 0.7180, AUD eased from 0.7176 to 0.7141 before settling at 0.7150 (-0.27%). The price movements are likely part of a consolidation phase.