AUD/USD: Further downside likely below 0.6630 – UOB

Pablo Piovano FXStreet

In the view of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, further retracement in AUD/USD appears on the table while below 0.6630.

Key Quotes

24-hour view: “We indicated last Friday that ‘downward pressure has eased somewhat but AUD could drop towards the 0.6600 level again before a more sustained recovery is likely’. However, after dropping to 0.6618, AUD rebounded to a high of 0.6675 and then closed at 0.6651 (+0.45%). Downward pressure has eased and AUD has likely entered a consolidation phase. Today, AUD is likely to trade sideways between 0.6630 and 0.6680.”

Next 1-3 weeks: “In our latest narrative from last Friday (19 May, spot at 0.6630), we noted that ‘downward momentum has not improved much’ but we see a chance for AUD to drop to 0.6575. AUD dropped to 0.6618, rebounded and then closed at 0.6651 (+0.45%). Short-term downward momentum is beginning to ease and AUD has to break and stay below 0.6630 in the next 1-2 days or the chance of it declining further to 0.6575 will fizzle out. Conversely, a clear breach of 0.6685 (no change in ‘strong resistance’ level from last Friday) would indicate that AUD is not weakening further.”

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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