AUD/USD: Major support at 0.6460 seems out of reach for now – UOB Group

FXStreet Insights Team FXStreet

There is a chance for Australian Dollar (AUD) to drop further, but the major support at 0.6460 could be out of reach for now. In the longer run, AUD is likely to trade with a downward bias toward 0.6460, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD is likely to trade with a downward bias

24-HOUR VIEW: "When AUD was at 0.6535 in the early Asian session yesterday, we indicated that 'the price movements still appear to be part of a range trading phase, and we continue to expect AUD to trade between 0.6510 and 0.6560'. We did not expect AUD to drop to a low of 0.6482. The decline has gathered momentum, and today, there is a chance for AUD to drop further. However, the major support at 0.6460 could be out of reach for now. To keep the momentum going, AUD must hold below 0.6520, with minor resistance at 0.6505."

1-3 WEEKS VIEW: "We have expected AUD to trade in a range since early last week (as annotated in the chart below). In our latest narrative from last Friday (14 Nov, spot at 0.6530), we highlighted that we 'continue to expect AUD to trade in a 0.6490/0.6580 range'. Yesterday, AUD fell and broke below 0.6490 (low of 0.6482). Downward momentum is starting to build, and AUD is likely to trade with a downward bias toward 0.6460. We will maintain our view as long as 0.6540 (‘strong resistance’ level) holds."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.