AUD/USD: Focus is now on 0.6900 – UOB

Pablo Piovano FXStreet

A potential test of 0.6850 emerges on the horizon if AUD/USD closes below the 0.6900 level, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are mostly neutral’ and we expected AUD ‘trade sideways within a range 0.6920/0.7010’. Our view for sideway-trading turned out to be correct even though AUD traded within a narrower range than expected (0.6935/0.6993). Downward momentum has improved somewhat and AUD could drift lower to 0.6930. The next support at 0.6900 is unlikely to come into the picture. On the upside, a breach of 0.6995 would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Monday (20 Jun, spot at 0.6955). As highlighted, AUD is likely still consolidating within a range of 0.6900/0.7100. Looking ahead, only a daily closing below 0.6900 would indicate that AUD is ready to move to 0.6850.”

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.

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