AUD/USD Upside Capped at 0.7075, UOB Says After Sharp Pullback
AUD/USD's upside is limited around 0.7075 after a brief spike to 0.7069 was followed by a drop to 0.6984, UOB's Quek Ser Leang reports.
UOB's FX strategist Quek Ser Leang observed that the Australian dollar briefly tested the 0.7069 level against the US dollar before pulling back sharply to 0.6984. The bank views the retreat as overdone, suggesting the pair may now enter a period of consolidation.
For intraday trade, UOB expects AUD/USD to fluctuate within a range, with support near 0.6980. The report notes that upside momentum is limited and the 0.7075 level is likely to cap any near-term gains.
The assessment comes as traders reassess the currency pair's direction following the failed breakout attempt. No major catalysts were cited, but the technical outlook points to a sideways trading session ahead.
Source: FXStreet Forex News