AUD/USD recent neutral outlook turns bearish – UOB

By FXStreet FXStreet (Guatemala) – Analysts at UOB Group noted that the sharp drop in AUD/USD after the weaker than expected inflation data appears to be over-extended for now.

Key Quotes:

“Another leg lower to 0.7095/00 would not be surprising but a sustained move below this level is not expected. Strong resistance is at 0.7170 ahead of the high near 0.7210.

After trading choppily for the past couple of weeks, AUD finally staged a strong move that clearly broke below the 0.7180 support. The recent neutral outlook has shifted to bearish and from here, we target a move to 0.7050. A move back above 0.7210 is enough to indicate to us that the current weakness is a ‘false break’.
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Source:: FX Street