AUD/USD: The pair may surpass 0.6755 – UOB Group

The Australian Dollar (AUD) is likely to edge higher, and the 0.6755 level is expected to offer solid resistance. If AUD can surpass 0.6755, it could continue to rise to 0.6800, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

Above 0.6755 AUD can continue to rise to 0.6800

24-HOUR VIEW: “After AUD surged to a high of 0.6734 two days ago, we indicated yesterday that ‘the sharp rally appears to be overdone, and instead of continuing to rise, AUD is likely to trade in a sideways range of 0.6685/0.6735.’ AUD then traded between 0.6704 and 0.6732. Upward momentum has increased, albeit not much. Today, provided that AUD does not break below 0.6690, it is likely to edge higher. However, the 0.6755 level is expected to offer solid resistance.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (04 Jul, spot at 0.6710). As highlighted, after rising strongly two days ago, upward momentum has increased. We pointed out that there is a significant resistance at 0.6755. If AUD can surpass this level, it could continue to rise to 0.6800. We will continue to expect a higher AUD, provided that it remains above 0.6665 (no change in ‘strong support’ from yesterday).”