AUD/USD: Above 0.6410, further advances can be expected – UOB Group
Instead of continuing to rise, AUD is more likely to trade in a 0.6260/0.6360 range. In the longer run, AUD must break and hold above the significant resistance at 0.6410 before further advances can be expected, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
AUD/USD to advance further above 0.6410
24-HOUR VIEW: "AUD fluctuated in a wide range on Wednesday. Yesterday (Thursday), we were of the view that AUD 'could continue to trade in a choppy manner, likely between 0.6220 and 0.6320.' AUD then dropped to 0.6226 before soaring to 0.6390, pulling back sharply to close at 0.6329
(+0.46%). The pullback in overbought conditions suggests that instead of continuing to rise, AUD is more likely to trade in a 0.6260/0.6360 range."
1-3 WEEKS VIEW: "Yesterday (03 Apr, spot at 0.6265), we highlighted that 'the recent sharp but short-lived swings have resulted in a mixed outlook.' We added, 'for the time being, AUD could trade in a 0.6185/0.6340 range.' While AUD subsequently broke above 0.6340, after the recent
choppy price movements, the increase in momentum is not enough to indicate a sustained rise. AUD must break and hold above the significant resistance at 0.6410 before further advances can be expected. The likelihood of AUD breaking this resistance will remain intact, provided that it remains above the ‘strong support’ level, currently at 0.6235."
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FXStreet Insights Team
FXStreet
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