AUD/USD: May take a look at the 0.6570 stage earlier than the danger of a pullback will increase – UOB Group

Situations are approaching overbought, however Australian Greenback (AUD) may take a look at the 0.6570 stage earlier than the danger of a pullback will increase. Within the longer run, there was a tentative buildup in momentum; AUD may rise to 0.6575, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.

A tentative buildup in momentum

24-HOUR VIEW: “Following the rise in AUD that reached 0.6541 two days in the past, we indicated yesterday that ‘whereas there was no important enhance in upward momentum, AUD may rise additional.’ Nevertheless, we have been of the view that ‘any advance is unlikely to achieve the main resistance at 0.6555.’ AUD then rose greater than anticipated, reaching a excessive of 0.6563. Whereas situations are approaching overbought, AUD may take a look at 0.6570 earlier than the danger of a pullback will increase. We don’t anticipate 0.6600 to become visible right now. On the draw back, help ranges are at 0.6535 and 0.6520.”

1-3 WEEKS VIEW: “Our most up-to-date narrative was from Monday (11 Aug, spot at 0.6520), through which we indicated that ‘whereas we proceed to anticipate vary buying and selling, a narrower vary of 0.6470/0.6555 is probably going sufficient to include the worth actions for now.’ Yesterday (Wednesday), AUD rose above 0.6555, closing at 0.6545. There was a tentative buildup in momentum, and AUD may rise to 0.6575, so long as the ‘sturdy help’ stage, at present at 0.6500 holds. Trying forward, if AUD have been to interrupt above 0.6570, the following stage to look at is 0.6600.”