AUD/USD bearish on a close of 0.7510 – UOB

The research team at UOB Group suggested AUD/USD’s outlook could shift to bearish on a close below 0.7510.

Key Quotes

“The high of 0.7592 did not reach the target highlighted at 0.7600/05 yesterday. The subsequent consolidation has resulted in a mixed outlook even though the immediate bias appears to be on the downside. That said, 0.7510 is a strong support and this level is unlikely to yield so easily. On the upside, strong resistance is still at 0.7600/05”.

“The underlying tone for AUD remains weak but as highlighted yesterday, only a daily closing below the rising trend-line support at 0.7510 would indicate the start of a bearish phase. This appears to be a likely scenario unless AUD can reclaim 0.7600 within these 1 to 2 days. The immediate target below 0.7510 is at the September’s low of 0.7445”.