AUD/USD could slip back to the 0.7500 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While our expectation for AUD to weaken yesterday was correct, we were of the view that ‘0.7555 is likely out of reach’. The subsequent AUD weakness exceeded our expectation as it dropped to 0.7540. While clearly oversold, the weakness in AUD has scope to move below the April’s low near 0.7530. The next support at 0.7500 is unlikely to come under threat. Resistance is at 0.7580 followed by 0.7605.”

Next 1-3 weeks: “Yesterday (17 Jun, spot at 0.7615), we indicated that ‘downside risk remains intact but it is left to be seen if AUD could weaken to the next support at 0.7555’. We underestimated the downward momentum as AUD cracked 0.7555 and dropped to 0.7540. The ease by which AUD cracked 0.7555 coupled with strong downward momentum indicates that AUD is likely to weaken further. The next level to focus on is at 0.7500. Looking ahead, a break of 0.7500 would open up the way for a move to 0.7450. On the upside, a break of 0.7625 (‘strong resistance’ level was at 0.7690 yesterday) would indicate that the downside risk that started earlier this week has run its course.”

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD renews 22-year low as yields propel DXY, focus on ECB vs. Fed drama, energy crisis

EUR/USD renews 22-year low as yields propel DXY, focus on ECB vs. Fed drama, energy crisis

EUR/USD takes offers to refresh multi-year low during seven-day downtrend. US Treasury yields rally to fresh cycle highs amid fears of economic slowdown, hawkish central banks. Energy crisis in Eurozone joins fears of more drama on the Russia-Ukraine issue to keep bears hopeful.

EUR/USD News

GBP/USD bears approach 1.0600 in search of fresh record low, UK’s fiscal plans, Fed’s Powell eyed

GBP/USD bears approach 1.0600 in search of fresh record low, UK’s fiscal plans, Fed’s Powell eyed

GBP/USD remains on the back foot while reversing the previous day’s corrective bounce, taking offers near 1.0630 during early Wednesday morning in Europe. The Cable pair respects the US dollar’s latest run-up amid the rush for risk safety, as well as downbeat economic prospects for the UK.

GBP/USD News

Gold remains vulnerable amid surging bond yields, USD Premium

Gold remains vulnerable amid surging bond yields, USD

Gold staged a modest recovery from its lowest level since April 2020 touched on Tuesday, though lacked any follow-through buying. An intraday US dollar downtick was seen as a key factor that offered some support to the dollar-denominated commodity. 

Gold News

Dogecoin price provides sidelined buyers another opportunity before a 50% rally

Dogecoin price provides sidelined buyers another opportunity before a 50% rally

Dogecoin price undid its gains seen between September 21 and 24 as it came tumbling down, following the footsteps of Bitcoin price. 

Read more

Lower gas prices and favorable views of labor market again boost confidence

Lower gas prices and favorable views of labor market again boost confidence

The Consumer Confidence Index rose to its highest level since April, and now sits more than 12 points higher than where it was just two months ago. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures