AUD/USD: Chance to edge below 0.6400 – UOB Group
Australian Dollar (AUD) could edge below 0.6400 against US Dollar (USD); the next support at 0.6380 is unlikely to come under threat. In the longer run, for the time being, AUD is expected to trade in a range of 0.6380/0.6485, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Next support at 0.6380 is unlikely to come under threat
24-HOUR VIEW: "AUD edged to a low of 0.6435 two days ago. Yesterday, when AUD was at 0.6450, we highlighted that 'while the weakness has not quite stabilised, AUD does not appear to have enough momentum to continue to decline.' We were of the view that AUD is 'more likely to trade in a range of 0.6430/0.6485.' Although AUD traded in a lower range than expected (0.6410/0.6454), downward momentum has not increased significantly. That said, AUD could edge lower below 0.6400 today. The next support at 0.6380 is unlikely to come under threat. Resistance levels are at 0.6435 and 0.6455."
1-3 WEEKS VIEW: "Following the decline in AUD two days ago, we highlighted yesterday (28 May, spot at 0.6450) that 'The loss in momentum indicates the likelihood the likelihood of AUD reaching 0.6550 is low.' We added, 'if AUD were to break clearly below 0.6430 (‘strong support’ level), it would mean that it could range trade for a period.' AUD subsequently fell to 0.6410. Upward momentum has faded, and for the time being, we expect AUD to trade in a range of 0.6380/0.6485."
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FXStreet Insights Team
FXStreet
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