AUD/USD: Advance expected to face strong resistance at 0.6620

The Australian Dollar (AUD) is likely to trade with an upward bias; any advance is expected to face strong resistance at 0.6620. In the longer run, month-long AUD weakness has stabilised; AUD is expected to trade in a 0.6535/0.6655 range for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Month-long AUD weakness seems stabilised

24-HOUR VIEW: “We expected AUD to trade in a range between 0.6550 and 0.6600 last Friday. AUD then traded in a narrower range of 0.6554/0.6591, closing at 0.6560. It gapped higher upon opening today. There has been a slight increase in upward momentum, and AUD is likely to trade with an upward bias. However, any advance is expected to face strong resistance at 0.6620. Support is at 0.6570, followed by 0.6555.”

1-3 WEEKS VIEW: “We have held a negative AUD view since early last month. In our most recent narrative from last Wednesday (30 Oct, spot at 0.6565), we pointed out that ‘Although the weakness has not stabilised, given that the current decline is entering its second month, the potential for further sustained weakness may be limited.’ We also pointed out that ‘The next level to monitor is 0.6520, and only a breach of 0.6620 (‘strong resistance’ level) would mean that the weakness in AUD has stabilised.’ AUD gapped higher upon opening today and rose above 0.6600. Although our ‘strong resistance’ level has not been clearly breached, downward momentum has largely faded. To look at it another way, the month-long AUD weakness has stabilised. From here, AUD is expected to trade in range, likely between 0.6535 and 0.6655.”

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.