AUD/USD is under mild downward pressure – UOB Group
Australian Dollar (AUD) is under mild downward pressure vs US Dollar (USD); it could edge lower but is unlikely to break below 0.6305 (there is another support at 0.6325). In the longer run, momentum is slowing; a breach of 0.6305 would indicate that AUD is likely to trade in a range instead of advancing, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Under 0.6305, AUD is likely to trade in a range
24-HOUR VIEW: "Yesterday, we noted that 'the price movements continue to suggest range trading, likely between 0.6330 and 0.6365.' However, AUD traded in a 0.6337/0.6370 range, closing slightly lower at 0.6345 (-0.14%). There has been a slight increase in downward momentum. Today, we expect AUD to edge lower, but given the mild momentum, any decline is unlikely to break the strong support at 0.6305 (there is another support at 0.6325). Resistance is at 0.6355; a breach of 0.6370 would indicate that the mild downward pressure has eased."
1-3 WEEKS VIEW: "We have held a positive AUD view since early this month. In our latest narrative from Monday (17 Feb, spot at 0.6355), we highlighted, 'momentum remains strong, and we continue to expect AUD to advance, potentially to 0.6410.' Since then, AUD has not been able to make much headway on the upside. Upward momentum is slowing, and a breach of 0.6305 (no change in ‘strong support’ level) would indicate AUD is likely to trade in a range instead of advancing."
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FXStreet Insights Team
FXStreet
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