AUD/USD: Likely to trade in a sideways range between 0.6455 and 0.6495 – UOB Group
|Australian Dollar (AUD) is likely to trade in a sideways range between 0.6455 and 0.6495. In the longer run, downward momentum is slowing; a breach of 0.6520 would indicate that AUD is not breaking below 0.6405, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward momentum is slowing
24-HOUR VIEW: "We indicated the following after last Friday’s price movements: 'The price movements did not result in any significant increase in upward momentum. Rather than continuing to rise, AUD is more likely to trade sideways today, probably between 0.6430 and 0.6495.' Our view of sideways trading was not wrong, although AUD traded within a much narrower range than expected (0.6460/0.6489). The price action still appears to be part of a sideways trading phase. Today, we expect AUD to trade between 0.6455 and 0.6495."
1-3 WEEKS VIEW: "The following from our update yesterday (04 Aug, spot at 0.6465) is still valid: 'Last Thursday (31 Jul, spot at 0.6445), we indicated that AUD 'could potentially break below 0.6405 and test June’s low, near 0.6375.' We also indicated that 'to maintain the momentum buildup, AUD must hold below 0.6520 (‘strong resistance’ level).' After dropping to a low of 0.6419 on Friday, AUD rose sharply, reaching a high of 0.6493. Downward momentum is slowing, a breach of 0.6520 would indicate AUD is not breaking below 0.6405."
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