AUD/USD: Major resistance at 0.6555 is likely out of reach – UOB Group
|Bias for Australian Dollar (AUD) is on the upside; lackluster momentum indicates that the major resistance at 0.6555 is likely out of reach. In the longer run, the current price movements are likely part of a 0.6450/0.6555 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Bias for AUD is on the upside
24-HOUR VIEW: "AUD rose to a high of 0.6509 two days ago. Yesterday, when it was at 0.6500, we indicated that 'despite the advance, upward momentum has not increased much.' However, we were of the view that 'there is scope for AUD to test 0.6520 before a pullback can be expected.' AUD subsequently rose more than expected to 0.6541, then pulled back to 0.6490 before rebounding to close at 0.6524, up by 0.34%. Although upward momentum appears lackluster, the bias for today is on the upside. That said, the major resistance at 0.6555 is likely out of reach. Note that there is another resistance level at 0.6540. Support is at 0.6510; a breach of 0.6490 would indicate that the upside bias has faded."
1-3 WEEKS VIEW: "We revised our AUD view to neutral yesterday (07 Aug, spot at 0.6500). We indicated that 'the current price movements are likely part of a range trading phase, probably between 0.6450 and 0.6555.' Our view remains unchanged."
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.