A move above 0.6600 is very likely – UOB Group

There was a slight increase in momentum; The Australian dollar (AUD) needs to break clear above 0.6600 before further advance can be expected, note UOB Group FX analysts Quek Ser Leang and Peter Chia.

AUD can use 0.6600 as support

24 HOURS: “Last Friday, AUD rose to 0.6605 and then retreated to 0.6571 (-0.32%). The pullback into overbought conditions and slowing pace suggests that the current price action is likely part of a consolidation phase, likely between 0.6545 and 0.6595.”

WEEKS 1-3: “In our most recent story last Tuesday (06 Aug, dot at 0.6510), we indicated that the AUD weakness from late last month had stabilised. We deemed the AUD “likely to trade in a 0.6400/0.6600 range for now”. Last Friday, the AUD briefly rose to 0.6605 and then retreated. There was a slight increase in upside momentum, but not enough to suggest the start of a sustained advance. From here, the AUD needs to break and hold above 0.6600 before further advance can be expected. The chance of AUD breaking clear above 0.6600 will increase in the coming days, provided 0.6510 (the “strong support” level) is not breached. Looking ahead, if the AUD breaks clear above 0.6600, the next level to watch is 0.6660.”