AUD/USD: The pair may edge above 0.6685 – UOB Group

Underlying tone seems to be firming. The Australian Dollar (AUD) could edge above 0.6685 but is unlikely to threaten the major resistance at 0.6705. The likelihood of it breaking clearly above the major resistance zone of 0.6705/0.6715 is low for now, UOB Group analysts note.

The major resistance zone is at 0.6705/0.6715

24-HOUR VIEW: “We noted yesterday that the price action from Monday did not result in any increase in either upward or downward momentum. We expected AUD to trade sideways between 0.6630 and 0.6685. AUD then traded in a range of 0.6634/0.6671, closing at 0.6668 (+0.11%). The underlying tone seems to be firming, and AUD is likely to trade with an upward bias today. While it could edge above 0.6685, the major resistance at 0.6705 is unlikely to come under threat. Support levels are at 0.6655 and 0.6640.”

1-3 WEEKS VIEW: “Our most recent narrative was from Monday (01 Jul, spot at 0.6670), wherein the recent price action has resulted in a slight increase in upward momentum. We indicated 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.’ While we continue to expect AUD to edge higher, the ‘strong support’ level has moved up to 0.6625 from 0.6610.”