Robust momentum is more likely to result in additional weak point; oversold circumstances recommend Australian Greenback (AUD) could not attain 0.6405 in opposition to US Greenback (USD), UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Robust momentum is more likely to result in additional weak point
24-HOUR VIEW: “Our view of range-trading yesterday was incorrect, as AUD dropped sharply to a low of 0.6427. Robust momentum is more likely to result in additional weak point, however the oversold circumstances recommend 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: “Momentum continues to construct; AUD might probably break under 0.6405 and check June’s low, close to 0.6375. We highlighted two days in the past (29 Jul, spot at 0.6525) that the current ‘buildup in upward momentum had dissipated, and there are early indicators of constructing downward momentum.’ We have been of the view that AUD ‘is more likely to edge decrease, probably reaching 0.6480.’ Fairly than edging decrease, AUD plunged under 0.6480 yesterday, reaching a low of 0.6427. Momentum continues to construct, and AUD might probably break under 0.6405 and check June’s low, close to 0.6375. To keep up the momentum buildup, AUD should maintain under 0.6520 (‘robust resistance’ degree was at 0.6570 yesterday).”
