AUD/USD: Extra upside looks likely – UOB
|In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further gains in AUD/USD appears in store for the time being.
Key Quotes
24-hour view: We expected AUD to edge higher yesterday. However, we indicated that “in view of the mild upward pressure, any advance is not expected to break the major resistance at 0.6485.” Our expectations were not wrong, as AUD rose to 0.6474 before easing off. The mild upward pressure is intact, and there is room for AUD to continue to edge higher. That said, a sustained break above 0.6485 is unlikely. On the downside, a breach of 0.6430 (minor support is at 0.6445) would suggest that the current mild upward pressure has eased. \
Next 1-3 weeks: Two days ago (18 Sep, spot at 0.6435), we highlighted that as long as 0.6385 is not breached, there is a chance for AUD to test the resistance at 0.6485. AUD did not quite test 0.6485 as it rose to 0.6474 on Tuesday and Wednesday. Upward momentum has improved, albeit not by much. AUD is likely to trade with an upward bias, and if it breaks above 0.6485, it will likely advance further to 0.6515. The upside bias is intact as long as AUD stays above 0.6410 (‘strong support’ level previously at 0.6385).
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.