Extra losses in AUD/USD could re-visit the 0.7105 level in the short-term horizon, suggested FX Strategists at UOB Group.
24-hour view: “We expected AUD to weaken last Friday but we were of the view that ‘any weakness is expected to encounter strong support at 0.7140’. The subsequent weakness exceeded our expectations as AUD plummeted to 0.7113 before rebounding. The combination of oversold conditions and waning momentum indicates that AUD has likely moved into a consolidation phase. In other words, AUD is likely to trade sideways for today, expected to be between 0.7115 and 0.7160.”
Next 1-3 weeks: “We have expected AUD to weaken since early last week. In our latest narrative from last Friday (26 Nov, spot at 0.7170), we indicated that there is room for AUD to weaken further but it is too early to tell if AUD could move to the year-to-date low near 0.7105. AUD subsequently dropped to 0.7113. Downward momentum has improved and a break of 0.7105 would not be surprising. That said, deeply oversold conditions suggest that AUD may not be able to maintain a foothold below this level. Overall, the current AUD weakness is deemed intact as long as it does not move above 0.7205 (‘strong resistance’ level was at 0.7235 last Friday).”
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.