Australian Greenback (AUD) may proceed to rise in opposition to US Greenback (USD); deeply overbought situations recommend any advance might not attain 0.6625. Within the longer run, fast enhance in momentum is prone to result in additional AUD advance to 0.6625, probably reaching 0.6645, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Speedy enhance in momentum is prone to result in additional AUD advance
24-HOUR VIEW: “When AUD was at 0.6550 yesterday, we famous that ‘momentum is growing, albeit not by a lot.’ Whereas we anticipated AUD to ‘edge increased,’ we have been of the view that ‘any advance is unlikely to achieve 0.6575.’ Our directional name was right, however we didn’t anticipate the sudden upward acceleration as AUD soared above 0.6575 and broke a big resistance at 0.6595 (excessive of 0.6603). Whereas AUD may proceed to rise immediately, deeply overbought situations recommend any advance might not attain 0.6625. On the draw back, any pullback is prone to maintain above 0.6565, with minor help at 0.6585.”
1-3 WEEKS VIEW: “Yesterday (23 Jul, spot at 0.6550), we highlighted that ‘there was a slight enhance in upward momentum.’ We added, AUD ‘may edge increased towards 0.6575.’ We identified that ‘to keep up the momentum, AUD should maintain above 0.6505.’ Nevertheless, as a substitute of edging increased, AUD surged and reached a excessive of 0.6603. The fast enhance in momentum is prone to result in additional advance to 0.6625, probably reaching 0.6645. On the draw back, the ‘robust help’ stage is now at 0.6530 as a substitute of 0.6505.”
