0.7035 in sight as Australian Dollar uptrend builds against US Dollar – UOB

AUD/USD reclaimed the 0.70 handle. UOB strategists Quek Ser Leang and Lee Sue Ann attribute the pair’s gains to a weaker US Dollar, noting that momentum strengthened faster than expected. While intraday upside may remain contained within a narrow range, the 1–3 week outlook now favours further gains towards 0.7035, as long as the pair stays above a nearby strong support zone.

0.70 reclaimed as Australian Dollar momentum strengthens

"24-HOUR VIEW: After AUD rose to a high of 0.6993 two days ago, we highlighted the following yesterday: “Upward momentum is increasing, albeit not significantly. Today, there is scope for AUD to test 0.7000. A clear break above this level is unlikely. The major resistance at 0.7015 is also unlikely to come into view.” We did not expect upward momentum to strengthen so quickly as AUD soared to a high of 0.7017, closing 0.34% higher at 0.7003. While further AUD strength is not ruled out, negative divergence is forming on momentum indicators, and any advance is likely to stay within a range of 0.6985/0.7020."

"1-3 WEEKS VIEW: On Monday (19 Oct, spot at 0.6965), we highlighted that AUD “appears to have moved into a range-trading phase,” and “for the time being, we expect it to trade between 0.6915 and 0.7015.” Yesterday, AUD broke above 0.7015 as it rose to a high of 0.7017. Upward momentum is starting to build, and AUD could rise toward 0.7035 as long as it holds above the ‘strong support’ level, currently at 0.6965."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)