AUD/USD: Range resistance to cap AUD before retracing lower - Westpac

Daily momentum of AUD/USD pair appears to be topping but has not, as yet, convincingly turned but upside potential appears limited (likely resistance at 0.7650), according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Any slippage now below 0.7545 could trigger a bout of deep pullbacks through the range of the past quarter, initially targeting 0.7445-80 area and then 0.7330.”

“Weekly

• Though weekly momentum took on a more supportive profile into June, it remains within decidedly neutral levels
• Consequently, rebounds still fit the favoured bias of defining longer term resistance in advance of a down-leg towards the lows of the past 18 months (0.71-0.72)”

“Monthly

• Though stochastics have a mild topping bias, other momentum indicators have reverted to a neutral stance and so suggest that a broad consolidation is in place
• Recent AUD gains are seen as defining longer term resistance. The bias for 2H’17 continues to be deeper pullbacks within the broad consolidation context”