AUD/USD: To rise above 0.6310 – UOB Group
|Chance for Australian Dollar (AUD) to rise above 0.6310; it remains to be seen if it can maintain a foothold above this level. In the longer run, buildup in momentum is fading; a break below 0.6230 would mean that AUD is likely to trade in a range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Below 0.6230, AUD is likely to trade in a range
24-HOUR VIEW: "While we expected AUD to 'trade with a downward bias' yesterday, we pointed out, 'given the mild downward momentum, any decline is limited to a test of 0.6230.' Our expectation did not turn out, as AUD traded in a 0.6262/0.6302 range, closing at 0.6295 (+0.28%). The price action has resulted in a tentative buildup in momentum. Today, there is a chance for AUD to rise above 0.6310, but it remains to be seen if it can maintain a foothold above this level. The probability of AUD breaking above 0.6330 appears low. Support is at 0.6265; a breach of 0.6245 would suggest that the upward pressure has eased."
1-3 WEEKS VIEW: "Last Thursday (06 Feb, spot at 0.6280), we indicated that 'if AUD closes above 0.6310, it could trigger an advance to 0.6355.' AUD did not make any headway on the upside, and yesterday (11 Feb, spot at 0.6270), we highlighted that that the recent 'buildup in momentum is fading, and if AUD breaks below 0.6230 (‘strong support’ level), it would mean that AUD is likely to trade in a range.' Although short-term momentum has increased somewhat, AUD must break and remain above 0.6310 before further advance can be expected. The likelihood of AUD breaking clearly above 0.6310 will remain intact as long as 0.6230 (no change in ‘strong support’) is not breached."
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.