AUD/USD: Unlikely to be able to break above 0.6630 today – UOB Group
|Australian Dollar (AUD) could continue to strengthen but is unlikely to be able to break above 0.6630 today. In the longer run, the price action continues to suggest AUD strength; the next level to watch is 0.6630, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Price action continues to suggest AUD strength
24-HOUR VIEW: "We expected AUD to 'edge higher to 0.6575' yesterday. However, we stated that 'we do not expect the next resistance at 0.6595 to come under threat.' Our view of a higher AUD was not wrong, even though it rose more than expected to a high of 0.6591. AUD closed at 0.6586 but rose further today. The rapid rise appears to be overdone, but AUD could continue to strengthen. That said, it is unlikely to be able to break above 0.6630 today. Note that there is a minor resistance at 0.6615. Support levels are at 0.6585 and 0.6570."
1-3 WEEKS VIEW: "Yesterday (28 Oct, spot at 0.6555), we turned positive on AUD. We indicated that AUD 'could edge higher to 0.6575, with lesser odds of reaching 0.6595.' We did not quite expect AUD to rise quickly to a high of 0.6591 in the late NY session. AUD rose further in the early Asian session today. The price action continues to suggest AUD strength. The next level to watch is 0.6630. We will maintain our positive view as long as 0.6535 (‘strong support’ level was at 0.6515 yesterday) holds."
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.