AUD/USD: Momentum buildup is fading – UOB Group
Further consolidation in Australian Dollar (AUD) still seems likely against US Dollar (USD), probably between 0.6505 and 0.6555. In the longer run momentum buildup is fading, but only a breach of 0.6585 would indicate that AUD is likely to range trade instead of edging lower, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Above 0.6585, AUD is likely to range trade
24-HOUR VIEW: "In early Asian trade yesterday, when AUD was at 0.6525, we pointed out that 'the price movements still appear to be part of a consolidation phase.' We expected AUD 'to trade in a range of 0.6495/0.6555.' AUD then consolidated in a tight range between 0.6510 and 0.6548 before closing largely unchanged at 0.6535 (+0.07%). Further consolidation still seems likely today, probably between 0.6505 and 0.6555."
1-3 WEEKS VIEW: "Two days ago (08 Jul, spot at 0.6515), we noted that “downward momentum is starting to build.” We expected AUD “to edge lower toward 0.6460.' AUD traded in a quiet manner over the past couple of days, but although the momentum buildup appears to be fading, only a breach of 0.6585 (no change in ‘strong resistance’ level) would mean AUD is likely to range trade instead of edging lower."
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FXStreet Insights Team
FXStreet
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