AUD/USD: Expected to edge lower to 0.6850 – UOB Group
|The Australian Dollar (AUD) is expected to edge lower to 0.6850; the major support at 0.6820 is unlikely to come under threat. AUD has likely entered a range trading phase, expected to be between 0.6820 and 0.6935, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
AUD has likely entered a range trading phase
24-HOUR VIEW: “After AUD rose to 0.6944 two days ago, we indicated yesterday that ‘there has been no further increase in momentum, and instead of continuing to rise today, AUD is expected to trade in a sideways range of 0.6885/0.6935.’ Instead of trading sideways, AUD fell to a low of 0.6858, closing at 0.6883 (-0.43%). Despite the decline, downward momentum only increases slightly. Today, we expect AUD to edge lower to 0.6850. The major support at 0.6820 is not expected to come under threat. Resistance levels are at 0.6900 and 0.6920.”
1-3 WEEKS VIEW: “In our most recent narrative from Monday (30 Sep, spot at 0.6910), we indicated that ‘while the recent price action suggests that AUD is likely to edge higher, it remains to be seen if there is enough momentum for AUD to reach 0.6980.’ We added, ‘a breach of 0.6860 (‘strong support’ level) would mean that AUD is not advancing further. In NY trade, AUD fell to a low of 0.6858. Despite the slight breach of our ‘strong support’ level, upward momentum has largely dissipated. AUD has likely entered a range trading phase, and it is expected to trade between 0.6820 and 0.6935 for the time being.”
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