Sturdy momentum is prone to result in additional weak spot; oversold situations counsel Australian Greenback (AUD) could not attain 0.6405. Within the longer run, momentum continues to construct; AUD may doubtlessly break beneath 0.6405 and check June’s low, close to 0.6375, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Sturdy momentum is prone to result in additional weak spot
24-HOUR VIEW: “Our view of range-trading yesterday was incorrect, as AUD dropped sharply to a low of 0.6427. Sturdy momentum is prone to result in additional weak spot, however the oversold situations counsel any decline could not attain 0.6405 (with minor assist at 0.6420). Resistance ranges are 0.6465 and 0.6485.”
1-3 WEEKS VIEW: “We highlighted two days in the past (29 Jul, spot at 0.6525) that the latest “buildup in upward momentum had dissipated, and there are early indicators of constructing downward momentum.” We had been of the view that AUD “is prone to edge decrease, doubtlessly reaching 0.6480.” Moderately than edging decrease, AUD plunged beneath 0.6480 yesterday, reaching a low of 0.6427. Momentum continues to construct, and AUD may doubtlessly break beneath 0.6405 and check June’s low, close to 0.6375. To keep up the momentum buildup, AUD should maintain beneath 0.6520 (‘robust resistance’ degree was at 0.6570 yesterday).”
