In the process of testing resistance 0.6810 – UOB Group

The Australian dollar (AUD) is expected to strengthen in a range of 0.6760/0.6810. In the long run, there was no further increase in momentum; if the AUD falls below 0.6730, it would mean 0.6870 is out of sight, note UOB Group analysts Quek Ser Leang and Lee Sue Ann.

AUD may rise after a sustained break of 0.6810

24-HOUR OUTLOOK: “Yesterday, we detected a ‘slight increase in upward momentum.’ I indicated that “there is scope for the AUD to rise, but any advance is likely limited to a test of 0.6815”. Our view was not wrong as the AUD rose to 0.6813, retreating to 0.6785 (-0.13%). The AUD has likely entered a consolidation phase. Today, we expect the AUD to trade in a range of 0.6760/0.6810.”

WEEKS 1-3: “Our most recent narrative was from Monday (26 August at 0.6790) where “while last Friday’s huge advance suggests further AUD strength given overbought conditions , it remains to be seen if 0.6870 is within reach in the next 1-2 weeks.’ Yesterday, the AUD rose to 0.6813, then retreated. There has been no further momentum building and if the AUD breaks below 0.6730 (no change to the ‘strong support’ level) it would mean 0.6870 is out of sight.”