AUD/USD: Unlikely to reach the major resistance at 0.6600 – UOB Group
|The Australian Dollar (AUD) could advance above 0.6560 but is unlikely to reach the major resistance at 0.6600. In the longer run, if AUD breaks below 0.6470, it would mean it is not rebounding further, UOB Group’s FX analyst Quek Ser Leang and Lee Sue Ann notes.
Below 0.6470, AUD not to rebound further
24-HOUR VIEW: “When AUD was at 0.6510 last Friday, we noted that ‘The price action still appears to be part of a range trading phase.’ We expected AUD to ‘trade in a range of 0.6490/0.6535.’ AUD then traded between 0.6472 and 0.6521, closing at 0.6500. It opened higher in Sydney trade today. Today, AUD could advance above 0.6560 but is unlikely to reach the major resistance at 0.6600. Support levels are at 0.6520 and 0.6500.”
1-3 WEEKS VIEW: “Last Wednesday (20 Nov, spot at 0.6530), we indicated that AUD could rebound to 0.6560, possibly 0.6600. After AUD struggled to extend its advance, we indicated last Friday (22 Nov, spot at 0.6510) that it ‘has not been able to make any headway on the upside.’ We added, ‘if AUD breaks below 0.6470 (‘strong support’ level), it would indicate that it is not rebounding further.’ AUD subsequently dipped briefly to 0.6472. Given that our ‘strong support’ level at 0.6470 has not breached, we will maintain our view for now. That said, AUD opened and traded on a strong note today, and the short-term momentum appears to be building again.”
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.