AUD/USD Set for Uptrend Towards 0.6550 Amid Strong Momentum – UOB

AUD/USD Set for Uptrend Towards 0.6550 Amid Strong Momentum – UOB

The Australian Dollar (AUD) continues to show resilience against the US Dollar (USD), supported by rising momentum that suggests a potential move towards the 0.6550 level, according to analysts at UOB Group.

Short-Term Outlook

In the 24-hour perspective, AUD/USD recently reached a high of 0.6537 before pulling back to close slightly lower at 0.6490, down 0.13% on the day. Despite this minor retreat, the pair remains in overbought territory. UOB expects AUD/USD to stay within a narrow trading range between 0.6455 and 0.6510 in the immediate term, citing that the strong pace of recent gains may limit further short-term advances.

1–3 Week Outlook

From a broader perspective, UOB maintains a bullish stance. As noted in their analysis dated May 26 (spot at 0.6495), a “sharp build-up in momentum” indicates that AUD/USD is likely to maintain an upward bias, with the 0.6550 target still intact. This outlook remains valid as long as the pair holds above the key support level at 0.6430.

Analysts caution that while the rally may slow due to technical conditions, the underlying trend remains positive. Traders are advised to monitor price action near the 0.6510 resistance and the 0.6430 support for potential breakout or reversal signals.