AUD/USD faces the next key support at 0.6765 – UOB
|AUD/USD remains under pressure and could dropt to 0.6765 in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “AUD plunged to a low of 0.6770, just a few pips above the major 0.6765 support level. The rapid decline is severely over-extended and further sustained weakness is not expected for today. That said, it is too soon to expect a recovery. AUD is more likely to consolidate and trade sideways at these lower levels, expected to be within a 0.6765/0.6810 range”.
Next 1-3 weeks: “We held the view yesterday (14 Nov, spot at 0.6810) that the “risk is on the downside but any weakness is likely limited to 0.6765”. AUD subsequently extended its decline and plummeted to 0.6770. While the price action has resulted in a rapid improvement in momentum, longer-term conditions are still rather oversold and the prospect for a sustained decline below 0.6765 is still not that high. That said, AUD is expected to remain on the back foot unless it can move back above 0.6845 (‘strong resistance’ level was at 0.6860 yesterday). Looking forward, if AUD were to move clearly 0.6765, it would likely face another solid support at 0.6725”.
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.