AUD/USD stays bullish near term – UOB

According to FX Strategists at UOB Group, the outlook on the Aussie Dollar remains bullish in the short term.

Key Quotes

“Instead of trading sideways, AUD sliced through major resistances to hit a high of 0.7636. The subsequent sharp drop suggests that a temporary top is in place. That said, it is too early to expect a significant pullback. AUD is more likely to consolidate its gains and trade sideways at these higher levels”.

“After trading in a muted manner for several days, AUD sprang to life and sliced through our bullish targets at 0.7575 and 0.7615 (high of 0.7636). The bullish phase that started one week ago is still clearly intact even though the rally appears to be running ahead of itself. Those who are long should consider exiting half their position at 0.7670/75, just below the next major resistance at 0.7680. Stop-loss is adjusted higher to 0.7540 from 0.7515”.