AUD/USD: Buildup in momentum is fading – UOB Group
The Austalian Dollar (AUD) is expected to trade between 0.6250 and 0.6310 against the US Dollar (USD). 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: "Yesterday, we noted 'a tentative buildup in momentum.' We indicated that '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.' During the NY session, AUD plummeted to 0.6235, soared to 0.6309, and then pulled back to close at 0.6278 (-0.27%). The choppy price action has resulted in a mixed outlook. Today, we expect AUD to trade between 0.6250 and 0.6310."
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. Two days ago (11 Feb, spot at 0.6270), we highlighted 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.' Yesterday, AUD fell to a low of 0.6235. As long as 0.6230 is not breached, there is still a slim chance for AUD to break clearly above 0.6310."
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FXStreet Insights Team
FXStreet
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