AUD/USD: Extra gains appear in the pipeline – UOB
|Following the recent price action, further gains appear on the table for AUD/USD in the short-term horizon, comment Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group.
Key Quotes
24-hour view: The sudden surge in AUD that sent it to a high of 0.6513 came as a surprise (we were expecting it to trade sideways). The outsized and rapid rise is severely overstretched, and AUD is unlikely to rise much further. Today, AUD is more likely to trade in a range, probably between 0.6440 and 0.6525.
Next 1-3 weeks: Yesterday, AUD surged and blew past our ‘strong resistance’ level at 0.6440. The breach of 0.6440 has invalidated our view that AUD “is likely to trade with a downward bias to 0.6300.” While upward momentum has increased after the sharp rally yesterday, AUD has to break above 0.6525 before a further sustained advance to 0.6585 is likely. There appears to be a high likelihood of AUD breaking clearly above 0.6525. On the downside, a breach of 0.6400 (‘strong support’ level) would mean that AUD is not ready to break above 0.6525.
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.