AUD/USD bullish above 0.7710 – UOB

AUD/USD should shift to a bullish bias on a close above 0.7710, according to FX Strategists at UOB Group.

Key Quotes

“While AUD managed to edge above the strong 0.7705 resistance (high of 0.7714), it was unable to hold on to its gain. The undertone has improved further but based on the current momentum, any up-move is expected to struggle near the major 0.7735 resistance. Support is at 0.7680 ahead of the still rather strong level of 0.7640”.

“We indicated yesterday that the odds for a move towards 0.7775/80 would continue to diminish unless AUD can move and stay above 0.7710. AUD briefly touched 0.7714 during NY session but the up-move was clearly lacking in momentum. From here, we would shift to a neutral stance unless there is a daily closing above 0.7710 by end of today’s NY close”.