AUD/USD May Test 0.6645 Before Potential Pullback – UOB Analysis

There's a solid chance the Aussie Dollar could push to 0.6645 before we see a pullback. I've watched this pair climb steadily, and honestly, I'm not convinced it has the momentum to break much higher right now - the rally feels a bit stretched.

Looking at the 24-hour view, UOB analysts got it wrong yesterday expecting consolidation between 0.6560-0.6605. Instead, AUD soared to 0.6639 - its highest since last November - before settling at 0.6614. Even with this jump, the momentum indicators don't show overwhelming bullish pressure. If you're trading this, watch for support at 0.6600 and 0.6585 if things reverse.

For the 1-3 week outlook, momentum still points higher after AUD broke above the year-to-date high of 0.6625, reaching 0.6636. But let's be real - these markets are getting seriously overbought. I doubt we'll see 0.6670 without some profit-taking first. The uptrend only reverses if we break below 0.6560.

The current rally feels too aggressive and disconnected from fundamentals. With markets constantly overreacting to Fed policy shifts and ignoring Australia's own economic challenges, a healthy correction seems inevitable. Most retail traders will probably get caught buying the top, as usual.

Only a decisive break below 0.6560 would signal this upward pressure has truly exhausted itself - and frankly, that scenario looks increasingly likely given the technical picture.