AUD Upside Risk Remains Intact as Long as Support Holds

Australian Dollar traders are advised to keep an eye on support levels as upside risk remains intact. According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the AUD/USD pair has been consolidating between 0.7050 and 0.7075 after a brief spike to 0.7091 failed to gain momentum.

On a one-to-three week view, UOB's analysts maintain that upside risk persists as long as the Australian Dollar holds above strong support at 0.7025. A close above 0.7075 could open up scope toward 0.7100 and a broader resistance zone at 0.7075/0.7090.

The AUD/USD pair did experience some volatility on Wednesday, rising briefly to 0.7091 before dropping back down. UOB's analysts pointed out that this brief advance did not result in any increase in upward momentum, and they continue to expect the AUD to trade within a range of 0.7050 to 0.7085.

However, it appears that the upside risk for the Australian Dollar remains intact as long as it holds above the 0.7025 support level. This is according to UOB's analysts, who highlighted that upward momentum is starting to slow but a breach of 0.7025 would indicate that the upside risk has faded.