AUD/USD could grind lower and test 0.6810 – UOB


FX Strategists at UOB Group noted AUD/USD could drop to the 0.6810 area on a close below 0.6865.

Key Quotes

24-hour view: “We expected AUD to weaken last Friday but held the view that “the next support at 0.6865 is unlikely to come into the picture”. Against our expectation, AUD dropped to 0.6862 before recovering slightly. In view of the oversold conditions, further sustained decline is not expected for today. AUD is more likely to consolidate and trade sideways, expected to be between 0.6860 and 0.6900”.

Next 1-3 weeks: “While we shifted our narrative for AUD from to “trade with an upside bias” to “trade sideways” last Thursday (13 Jun, spot at 0.6930), the pace of which the bottom of the expected 0.6865/0.6990 sideway trading range was tested came a surprise (AUD touched 0.6862 during NY hours last Friday). Downward momentum has clearly improved and from here, if AUD were to register a NY close below 0.6865, it would indicate the start of a move to 0.6810. The prospect for such a move is quite high unless AUD can reclaim 0.6935 within these few days”.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: 50-day SMA restricts immediate recovery

EUR/USD buyers look for confirmation, despite recent bounce, as prices still trade below the near-term key moving average, around 1.1025, during early Friday.

EUR/USD News

GBP/USD: On the bids above 100-bar SMA

GBP/USD holds on to recovery gains from 50% Fib retracement level while taking the bids to 1.2885 during the early Asian. Bullish MACD indicates pair’s another run-up to the short-term key resistance line.

GBP/USD News

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

Gold awaits clear direction around $1470 amid risk reset

With the fresh optimism surrounding the US-China trade accord, Gold prices struggle to extend the previous recovery while taking rounds to $1,471 amid Friday’s initial Asian trading session.

Gold News

US China trade and the global economy: Q&A with FXStreet senior analyst

After the meetings in October it was unclear if the new levies planned for December would be called off. And now, reports suggest that past duties may be removed. All in all, a positive development, isn't it?

Read more

Forex MAJORS

Cryptocurrencies

Signatures