AUD/USD faces a tough resistance around 0.6915/40 – UOB

Pablo Piovano FXStreet

The continuation of the uptrend in AUD/USD is expected to meet solid resistance in the 0.6915/40 band for the time being, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Last Friday, we indicated that “there is room for AUD to strengthen further but overbought conditions suggest a break of 0.6915 is unlikely today.” Our view was correct as AUD rose to 0.6900 before easing off to close at 0.6876 (-0.11%). Conditions remain overbought and this combined with tentative signs of slowing momentum suggest AUD is unlikely advance further. Today, AUD could ease further but it is unlikely to threaten the support at 0.6830 (minor support is at 0.6850). Resistance is at 0.6890, followed by the rather strong level at 0.6915.

Next 1-3 weeks: Our update from last Friday (16 Jun, spot at 0.6875) is still valid. As highlighted, the AUD strength that started more than a week ago is still in place. However, after rising sharply and swiftly in the past one week or so, AUD is approaching a solid resistance zone between 0.6915 and 0.6940. This resistance zone might not be ease to break. On the downside, a breach of 0.6790 (no change in ‘strong support’ level) would indicate that AUD is not ready to break above the resistance zone.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.