AUD/USD: A break above 0.6705/0.67816 is unlikely – UOB Group

The Australian Dollar (AUD) is likely to trade sideways between 0.6630 and 0.6685 or to edge higher. The likelihood of it breaking clearly above the major resistance zone of 0.6705/0.67816 is low for now, UOB Group analysts note.

AUD moves sideways with an upward mood

24-HOUR VIEW: “After AUD rose sharply last Friday, we indicated yesterday that ‘the sharp rise appears to be overextended, and AUD is unlikely to advance much further.’ We expected AUD to trade sideways between 0.6630 and 0.6685. AUD then traded in a range of 0.6645/0.6689, closing at 0.6661 (-0.14%). There has been no increase in either upward or downward momentum. Today, we continue to expect AUD to trade sideways between 0.6630 and 0.6685.”

1-3 WEEKS VIEW: “We highlighted yesterday (01 Jul, spot at 0.6670) that ‘there has been a slight increase in upward momentum, but not enough to suggest the start of a sustained advance.’ We also highlighted that ‘as long as AUD remains above 0.6610, it is likely to edge higher, but the likelihood of it breaking clearly above the major resistance zone of 0.6705/0.6715 is low for now.’ We continue to hold the same view.”