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31 Mar 2015
AUD/USD break below 0.7560 not expected – UOB
FXStreet (Barcelona) - Analysts at UOB Group note that immediate downward pressure does exist for AUD/USD but a break below the major support zone of 0.7560/0.7610 is not expected.
Key Quotes
“AUD touched a 2-month high of 0.7939 last week but the subsequent sharp pull-back from the high suggests that it could be a ‘false break’.”
“While the immediate pressure is on the downside, a move below the major support at 0.7610 is not our base case scenario for this week.”
“Even a move below 0.7610 will encounter stiff support at the year-to-date low of 0.7560.”
“On the upside, only a break back above 0.7850 would indicate that the short-term downward pressure has eased.”
Key Quotes
“AUD touched a 2-month high of 0.7939 last week but the subsequent sharp pull-back from the high suggests that it could be a ‘false break’.”
“While the immediate pressure is on the downside, a move below the major support at 0.7610 is not our base case scenario for this week.”
“Even a move below 0.7610 will encounter stiff support at the year-to-date low of 0.7560.”
“On the upside, only a break back above 0.7850 would indicate that the short-term downward pressure has eased.”