To trade in a sideways range of 0.6885/0.6935 – UOB Group

The Australian dollar (AUD) is expected to trade in a sideways range of 0.6885/0.6935. In the long term, the AUD is likely to rise; It remains to be seen whether there is enough momentum for it to reach 0.6980, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

It may have enough momentum for AUD to reach 0.6980

24 HOURS: “Two days ago, the AUD rose to 0.6937 and then fell slightly. Yesterday, we highlighted that “while the upside momentum hasn’t built much, there is room for the AUD to test 0.6940 before another pullback is likely.” Later, AUD rose to 0.6944, retreating to 0.6913 (+0.13%). There has been no further momentum building and instead of continuing higher today, the AUD is expected to trade in a sideways range of 0.6885/0.6935.”

WEEKS 1-3 VIEW: “We continue to maintain the same view as yesterday (September 30, spot at 0.6910). As indicated, while recent price action suggests the AUD is likely to rise, it remains to be seen whether there is enough momentum for the AUD to reach 0.6980. On the downside, a break of 0.6860 (the ‘strong support’ level was at 0.6845 yesterday) would mean that the AUD does not advance further.”