AUD/USD faces solid support around 0.7090 – UOB
|In opinion of FX Strategists at UOB Group, further decline in AUD/USD should meet a tough contention around 0.7090 in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘a temporary low may be in place’ and we expected AUD to ‘trade sideways between 0.7110 and 0.7180’. Our view for sideway-trading was not wrong even though AUD traded within a narrower range than expected (07122/0.7178). Momentum indicators are mostly neutral and further sideway-trading appears likely. Expected range for today, 0.7120/0.7185.”
Next 1-3 weeks: “Two days ago (24 Jan, spot at 0.7180), we highlighted that downward momentum is showing tentative signs of building and the risk of AUD breaking 0.7140 has increased. After AUD dropped sharply to 0.7091 and rebounded, we highlighted yesterday (25 Jan, spot at 0.7150) that the rapid drop appears to be overdone but the downside risk remains intact. There is no change in our view but a break of 0.7225 (no change in ‘strong resistance’ level from yesterday) would indicate that the downside risk has dissipated. Looking ahead, the next support below 0.7090 is at 0.7060.”
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.