AUD/USD: Below 0.6440 can move to 0.6400

Downward momentum has eased; the Australian Dollar (AUD) is likely to trade in a range between 0.6440 and 0.6500. In the longer run, AUD must break and hold below 0.6440 before a move to 0.6400 can be expected, UOB Group’s FX analyst Quek Ser Leang and Lee Sue Ann note.

Downward momentum has eased

24-HOUR VIEW: “After AUD dropped sharply early yesterday, we pointed out that ‘downward momentum is beginning to build.’ We indicated, AUD ‘could break below 0.6440, but it might not be able to maintain a foothold below this level.’ We also indicated that ‘To sustain the momentum buildup, AUD must remain below 0.6510 (minor resistance is at 0.6490).’ AUD subsequently dropped to 0.6434, rebounding strongly to 0.6508. AUD closed at 0.6474 (-0.47%). Downward momentum appears to have eased with the strong rebound. In other words, AUD is likely to trade in a range today, probably between 0.6440 and 0.6500.”

1-3 WEEKS VIEW: “Yesterday (26 Nov), when AUD was at 0.6470, we highlighted that it ‘must break and hold below 0.6440 before a move to 0.6400 can be expected.’ We added, ‘The likelihood of AUD breaking clearly below 0.6440 will increase in the next few days, provided that 0.6525 is not breached.’ While AUD subsequently broke below 0.6440, it rebounded from 0.6434 to close at 0.6474. We continue to hold the same view for now.”

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.