Sharp drop in Australian Greenback (AUD) appears to be like overstretched towards US Greenback (USD), however there’s a likelihood for AUD to check 0.6500; the foremost assist at 0.6480 is unlikely to come into sight. Within the longer run, there was a tentative buildup in momentum; AUD is prone to edge decrease to 0.6480, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
AUD is prone to edge decrease to 0.6480
24-HOUR VIEW: “Yesterday, we famous that AUD ‘is underneath gentle downward stress.’ We indicated the next: ‘The slight improve in momentum signifies AUD could edge decrease right now, however any decline is unlikely to achieve 0.6515. Resistance is at 0.6560; a breach of 0.6575 would counsel that the present gentle downward stress has pale.’ Within the early NY session, AUD rose briefly to 0.6575 after which plummeted beneath 0.6515, reaching a low of 0.6508. The sharp drop appears to be like overstretched, however there’s a likelihood for AUD to check 0.6500. The key assist at 0.6480 is unlikely to come into sight. Resistance ranges are at 0.6540 and 0.6555.”
1-3 WEEKS VIEW: “Yesterday (15 Jul, spot at 0.6545), we reiterated our impartial view, indicating that AUD ‘is probably going nonetheless buying and selling in a 0.6515/0.6615 vary.’ AUD broke beneath 0.6515 within the NY commerce, reaching a low of 0.6508. There was a tentative buildup in momentum. From right here, we count on AUD to edge decrease, however at the moment, it’s unclear if it has sufficient momentum to interrupt clearly beneath 0.6480. To take care of the momentum buildup, AUD should maintain beneath the ‘robust resistance’ stage, at the moment at 0.6575.”
