Australian Dollar: Bulls challenge 0.7200 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight AUD/USD’s third consecutive daily gain, with the pair stalling just under the 0.7200 resistance.
UOB analysts Quek Ser Leang and Lee Sue Ann noted the Australian Dollar's (AUD) third consecutive daily gain against the US Dollar, with the pair hovering just below the 0.7200 resistance. While momentum shows negative divergence, they maintain an optimistic outlook for a brief push above 0.7200, although not a sustained or extended move to 0.7220.
In the short term (1-3 weeks), the analysts foresee a potential test of 0.7220 before increased pullback risks. On a 24-hour basis, AUD edged closer to the major resistance at 0.7200, peaking at 0.7198 and closing higher for the third straight day at 0.7194 (+0.31%). Despite hitting fresh three-month highs, upward momentum is weakening, with negative divergence on momentum indicators.
However, there is potential for AUD to surpass 0.7200, but it is unlikely to hold above this level. If AUD breaches 0.7175, it would signal a weakening of immediate upward pressure. Support is at 0.7185; a break of this level would suggest that the upward pressure has eased.
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