AUD/USD could advance to the 0.6525 level – UOB
|Further upside could encourage AUD/USD to revisit the 0.6525 level in the short-term horizon, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.
Key Quotes
24-hour view: We highlighted last Friday that “the strong rebound in AUD could test 0.6455 before easing.” We added, “the major resistance at 0.6480 is unlikely to come into view. The anticipated rebound exceeded our expectations, as AUD soared to a high of 0.6501. The advance was, however, short-lived, as AUD pulled back sharply from the high. The pullback in overbought conditions suggests AUD is unlikely to advance further. Today, AUD is more likely to trade sideways between 0.6400 and 0.6475.
Next 1-3 weeks: Last Friday (29 Sep, spot at 0.6435), we held the view that AUD “is still likely trading in a range, probably between 0.6360 and 0.6480.” AUD then rebounded strongly to a high of 0.6501 before pulling back to end the day slightly higher at 0.6435 (+0.11%). There is a slight buildup in momentum, and there is room for AUD to test the major resistance level at 0.6525. At this stage, it is too early to tell if AUD can break clearly above this level. On the downside, a breach of 0.6360 (‘strong support’ level) would indicate that the momentum buildup has faded.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.