AUD/USD: Risk for AUD shifts to the downside – UOB Group
|The current price movements are likely part of a consolidation phase, mostly likely between 0.6435 and 0.6475. In the longer run, risk for AUD has shifted to the downside; the 0.6380 level is expected to provide significant support, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
The 0.6380 level is expected to provide significant support
24-HOUR VIEW: “After AUD plummeted to a low of 0.6399 two days ago, we highlighted yesterday that ‘the weakness in AUD could retest the 0.6400 level before stabilisation is likely.’ We added, ‘to keep the oversold momentum going, AUD must remain below 0.6460, with minor resistance at 0.6445.’ Our view did not turn out, as AUD traded in a 0.6422/.6455 range, closing at 0.6452. The current price movements are likely part of a consolidation phase, most likely between 0.6435 and 0.6475.”
1-3 WEEKS VIEW: “We revised our view for AUD to negative yesterday (05 Dec, spot at 0.6430), indicating that ‘the risk for AUD has shifted to the downside.’ However, we pointed out, ‘any decline is expected to face significant support at 0.6380.’ We also pointed out that ‘to sustain the increase in momentum, AUD must not break above the ‘strong resistance’ level, currently at 0.6490.’ There is no change in our view.”
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.