AUD/USD appears to have met quite a strong support at the 0.6680 region, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “As expected, AUD is not ready to transit into a ‘positive phase’ as yet. The rally only got as far at 0.6822 on Fri before a wave of selling brought AUD down to 0.6749 by NY close on Mon. The undertone is neutral here and AUD is likely to trade sideways today. Expect support at 0.6725 and resistance at 0.6820″.
Next 1-3 weeks: “”Our last narrative was that a ‘sustained push below 0.6800 could shift focus to 0.6715’. Since then, AUD struggled to recover despite oversold conditions and on Wed, AUD tumbled to fresh lows of 0.6678. At the same time, the v-shaped recovery that followed suggested that the last of AUD bulls may have capitulated. Directional indicators though still negative are gradually turning higher. From here, improving upside momentum suggests AUD to grind higher towards its resistance at 0.6800. It has to break the 0.6845 ‘key resistance’ in order to indicate that a mid-term low is in place at 0.6678. On the downside, we expect supports at 0.6715 and 0.6680.”
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