AUD/USD: Extension towards 0.7450 seems likely - UOB

According to analysts from UOB, the immediate pressure on the AUD/USD pair is clearly on the downside. A decline toward 0.7450 is not ruled out, but it is expected to be a strong support.

Key Quotes: 

“AUD touched a low of 0.7495 last Friday and the target indicated at 0.7490 was not met. The immediate pressure is clearly on the downside and a move below 0.7490 is not ruled out even though oversold conditions suggests that the next support at 0.7450 is likely out of reach (minor support is at 0.7475). On the upside, last Friday's high near 0.7545/50 is expected to be strong enough to cap any intraday rebound.”

“While 0.7490 is still intact at the time of writing, a break of this level seems likely and the current AUD weakness is expected to extend towards 0.7450 (next support at 0.7400). Only a move back above 0.7550 would indicate that the immediate downward pressure has eased.”