There is still room for the continuation of the consolidative theme around AUD/USD in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “We expected AUD to trade within a 0.6835/0.6895 range yesterday. AUD initially dropped to 0.6833 before making a rapid turnaround and soared to a high of 0.6912. While upward momentum has not improved by much, the rebound has scope to extend higher even though the chance of breaking the strong resistance at 0.6930 is not high. On the downside, support is at 0.6875 followed by 0.6850. The 0.6833 low is not expected to come into the picture.”
Next 1-3 weeks: “We have held the same view since last Tuesday (23 Jun, spot at 0.6920) wherein AUD is expected to consolidate and trade between 0.6800 and 0.7010. The price actions since then were in line with our expectation. At this stage, there are no further clues and AUD could continue to trade sideways for a while more.”
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.