AUD/USD might drop further to 0.6465 – UOB Group
|Strong momentum suggests Australian Dollar (AUD) could drop further to 0.6465; the major support at 0.6445 is likely out of reach for now. In the longer run, outlook for AUD is negative now, but last month’s low near 0.6445 may not come into view so soon, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook for AUD is negative now
24-HOUR VIEW: "Two days ago, AUD dropped to a low of 0.6518 and then rebounded. Yesterday, we stated that 'there is a chance for AUD to retest the 0.6520 level before another rebound is likely'. Our assessments were incorrect, as AUD plunged to a low of 0.6481. Strong momentum suggests AUD could drop further, potentially testing 0.6460. The major support at 0.6445 is likely out of reach for now. To maintain the strong momentum, AUD must hold below 0.6515, with minor resistance at 0.6500."
1-3 WEEKS VIEW: "In our most recent narrative from last Friday (31 Oct, spot at 0.6555), we indicated that AUD “is likely to trade in a range between 0.6505 and 0.6610.” Yesterday, AUD broke below 0.6505 and dropped to a low of 0.6481. The decline has gathered momentum, and we are revising our view to negative. That said, last month low, near 0.6445, may not come into view so soon. To keep the momentum going, AUD must hold below the ‘strong resistance’ level, now at 0.6540."
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.