AUD/USD bullish, still targets 0.8165 – UOB

The outlook on the Aussie Dollar remains bullish with the immediate target still at 0.8165, according to FX Strategists UOB Group.

Key Quotes

24-hour view: “AUD dipped to a low of 0.8043 yesterday before rising quickly to a high of 0.8113. The subsequent swing lower from the high has resulted in a mixed outlook and the choppy price action is deemed as an on-going consolidation phase. In other words, expect further sideway trading for today, likely between 0.8050 and 0.8120”.

Next 1-3 weeks: “After hitting a high of 0.8136 last Friday (26 Jan), AUD has not been able to make much headway on the upside. The consolidation over the past couple of days has dented the upward momentum and this coupled with overbought conditions has increased the risk of a shortterm top. To put it another way, in order to maintain the current bullish momentum, AUD should not ‘dither’ around as this would lead to a rapid loss in momentum. For now, the focus is still at the strong and critical level of 0.8165 but AUD has to ‘punch’ above 0.8135 within the next 1 to 2 days or the prospect for the current bullish phase to extend further would diminish quickly. On the downside, support is at 0.8045 followed by the ‘stop-loss’ at 0.7990 (level unchanged)”.