AUD/USD: A move above 0.6600 is highly likely – UOB Group
There has been a slight increase in momentum; the Australian Dollar (AUD) must break clearly above 0.6600 before further advance can be expected, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
AUD may use 0.6600 as a support
24-HOUR VIEW: “Last Friday, AUD rose to 0.6605 and then pulled back to close at 0.6571 (-0.32%). The pullback in overbought conditions and slowing momentum suggests the current price action is likely part of a consolidation phase, probably between 0.6545 and 0.6595.”
1-3 WEEKS VIEW: “In our latest narrative from last Tuesday (06 Aug, spot at 0.6510), we indicated that the AUD weakness from late last month had stabilised. We held the view that AUD ’is likely to trade in a 0.6400/0.6600 range for the time being.’ Last Friday, AUD briefly rose to 0.6605 and then pulled back. There has been a slight increase in upward momentum, but not sufficiently enough to suggest the start of a sustained advance. From here, AUD must break and remain above 0.6600 before further advance can be expected. The chance of AUD breaking clearly above 0.6600 will increase in the next few days provided that 0.6510 (‘strong support’ level) is not breached. Looking ahead, if AUD breaks clearly above 0.6600, the next level to watch is 0.6660.”
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FXStreet Insights Team
FXStreet
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