Australian Greenback (AUD) may drop beneath 0.6370 in opposition to the US Greenback (USD) however may not be capable of preserve a foothold beneath this stage. Within the longer run, AUD should break and maintain beneath 0.6370 earlier than a transfer to 0.6330 might be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Beneath 0.6370, a transfer to 0.6330 might be anticipated
24-HOUR VIEW: “AUD fell sharply on Tuesday. Yesterday, Wednesday, we indicated that ‘the decline seems overextended, and somewhat than sustaining its downward momentum, AUD is extra prone to commerce in a decrease vary of 0.6400/0.6470.’ AUD then traded between 0.6396 and 0.6464. Downward momentum is constructing, and immediately, we count on AUD to weaken towards 0.6370. A break beneath this stage isn’t dominated out, however oversold situations point out that AUD may not be capable of preserve a foothold beneath this stage. The subsequent help at 0.6330 is unlikely to return below menace. Resistance ranges are at 0.6420 and 0.6440.”
1-3 WEEKS VIEW: “We highlighted yesterday (08 Might, spot at 0.6430) that AUD ‘seems to have entered a consolidation section, and in the interim, it’s prone to commerce between 0.6370 and 0.6515.’ AUD then fell to 0.6396, closing at 0.6401, decrease by 0.37%. The slight improve in momentum isn’t sufficient to recommend a sustained decline simply but. AUD should break and maintain beneath 0.6370 earlier than a transfer to 0.6330 might be anticipated. The chance of AUD breaking clearly beneath 0.6370 will stay intact so long as 0.6460 isn’t breached within the subsequent few days.”
