AUD/USD: Bears set to break below 0.6480 – UOB Group
|As long as 0.6540 is not breached, the Australian Dollar (AUD) could break the major support at 0.6480. It is unclear whether it can maintain a foothold below this level, ant it is uncertain if 0.6425 will come into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
Below 0.6480 the next level to watch is 0.6425
24-HOUR VIEW: “AUD closed at 0.6539 (-0.16%) in NY but in early Asian trade today, it plunged. The sharp decline appears to be a tad overdone. However, as long as 0.6540 is not breached, AUD could break below the major support at 0.6480. At this time, it is unclear whether it can maintain a foothold below this level (next support is at 0.6450).”
1-3 WEEKS VIEW: “Our most recent narrative was from last Friday (26 Jul, spot at 0.6545) wherein the weakness in AUD that started two weeks ago seems to be overextended, both time- and price-wise. However, we pointed out that ‘only a breach of 0.6615 will indicate that the weakness has stabilised,’ and that ‘there is still a chance, albeit a low one, for AUD to decline further to 0.6480.’ After trading in a quiet manner for a couple of days, AUD plunged in early Asian trade today. While the price action suggests further AUD weakness, the decline still seems to be overextended, and it is uncertain if the next support at 0.6425 will come into view (there is a minor support at 0.6450). On the upside, the ‘strong resistance’ level has moved lower to 0.6565 from 0.6615.”
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