AUD/USD bearish now, targets 0.7410 – UOB

The outlook on the Aussie Dollar has shifted to bearish and there is scope for a test of the 0.7410 area in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD sliced through the major 0.7500 support yesterday as it plummeted to a low of 0.7472. There appears to be room for another ‘down-leg’ to 0.7440 before stabilization can be expected. Resistance is at 0.7520 but the stronger level is closer to 0.7545”.

Next 1-3 weeks: “We indicated that “further weakness is not ruled out but 0.7500 is likely out of reach”. After holding above this level for a few days, AUD crashed below this major support yesterday and hit a low of 0.7473. The outlook has shifted to bearish but it feels like we are likely ‘too late in the game’. That said, there is scope for further AUD weakness towards the next support at 0.7410 (0.7440 is already quite a strong level). ‘Stop-loss’ is at 0.7570”.