AUD/USD could slip back to the 0.7630 – UOB

In light of the recent price action, AUD/USD could recede towards the 0.7630 area in the next weeks.

Key Quotes

“The ease of which the major 0.7735 support was taken out came as a surprise. We highlighted yesterday that a NY closing below 0.7700 would shift the current neutral outlook to bearish. While the closing level is at 0.7704, it is enough to indicate that the current price action is the start of a fresh bearish phase”.

“That said, the downside potential appears to be limited to 0.7630 for now. In order to maintain the current momentum, any short-term recovery should not move back above 0.7800 (stop-loss level). Positioning wise, those looking to sell may like to wait for a bounce to 0.7755”.