Downside pressure in AUD/USD looks mitigated – UOB
|In light of the recent price action in AUD/USD, the selling pressure appears to have lost some traction, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “AUD retreated quickly after briefly touching a high of 0.6933. A temporary top could be in place and from here, barring a move back above 0.6933, AUD could edge lower towards 0.6875. In view of the lackluster momentum, the next support at 0.6850 is likely ‘safe’ for today. On the upside, 0.6915 is a minor resistance ahead of 0.6933.”
Next 1-3 weeks: “AUD popped briefly to a high of 0.6934 yesterday (06 Jan) before retreating to end the day slightly lower at 0.6896 (-0.14%). While our ‘strong resistance’ level at 0.6950 is still intact, downward pressure has eased considerably. In other words, it appears increasingly likely that the pull-back from the late December’s peak of 0.7032 has found a short-term bottom at 0.6849 (low last Wednesday, 08 Jan). Meanwhile, a break of 0.6850 is not ruled out just yet.”
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.