AUD/USD risks further losses near term – UOB

AUD/USD faces the next support levels at 0.7400 and 0.7365 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to weaken yesterday but we were of the view that it ‘is unlikely to break the major support at 0.7445’. The ease by which AUD cracked 0.7445 and plummeted to 0.7417 came as a surprise. While clearly oversold, the sharp drop has scope to extend but a sustained decline below 0.7400 is unlikely. The next support at 0.7365 is not expected to come under challenge for now. Resistance is at 0.7455 but only a breach of 0.7470 would indicate that the current weakness has stabilized.”

Next 1-3 weeks: “On Wednesday (07 Jul, spot at 0.7490), we noted that risk for AUD is shifting to the downside but AUD has to break the major support at 0.7445 before a sustained decline can be expected. We added, ‘the prospect for AUD to break 0.7445 appears to be quite high’. AUD easily cracked 0.7445 yesterday (08 Jul) and plummeted to 0.7417. The price actions suggest that the risk for AUD is clearly on the downside. The support levels to watch out for are at 0.7400 and 0.7365. The downside risk is deemed intact as long as AUD does not move above 0.7500 (‘strong resistance’ level was at 0.7555 yesterday).”

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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1300 after German inflation data

EUR/USD continues to trade in the negative territory below 1.1300 as the American session gets underway. The data from Germany showed on Friday that the Harmonized Index of Consumer Prices, the ECB's preferred gauge of inflation, climbed to 6% on a yearly basis in November, compared to the market expectation of 5.4%.


GBP/USD extends slump below the 1.3300 mark

GBP/USD trades near its 2021 low in the 1.3290 region, as demand for the greenback picked up pace during US trading hours. Market participants are digesting the latest covid-related news, somehow less concerned about its effects on economic developments. 


Gold: En route to challenge the November monthly low

Spot gold gapped lower at the weekly opening. Concerns related to the new coronavirus variant named Omicron hit hard the markets on Friday, although thinned conditions may have exacerbated the reaction to the news, as the US celebrated Thanksgiving on Thursday.

Gold News

Ethereum breaks out of bullish pennant, targets new all-time high at $5,000

Ethereum price lost 14% of its market value in turmoil on Friday. ETH is on the path to recovery with a bullish break out of the pennant. Expect a rally to emerge as tailwinds attribute to new all-time highs.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!