There has been a slight increase in momentum; the Australian Dollar (AUD) needs to break clearly above 0.6600 before a further advance can be expected, note UOB Group FX analysts Quek Ser Leang and Peter Chia.
AUD can use 0.6600 as support
24-HOUR VIEW: “Last Friday, the AUD rose to 0.6605 and then retreated to close at 0.6571 (-0.32%). The pullback into overbought conditions and decelerating momentum suggest that the current price action is likely part of a consolidation phase, likely between 0.6545 and 0.6595.”
1-3 WEEK VIEW: “In our last narrative on Tuesday (August 6 at 0.6510), we indicated that the AUD weakness since late last month had stabilised. We maintained the view that the AUD ‘will likely trade in a 0.6400/0.6600 range for the time being.’ Last Friday, the AUD briefly rose to 0.6605 and then pulled back. There has been a slight increase in bullish 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 a further advance can be expected. The probability of the AUD clearly breaking above 0.6600 will increase in the coming days, provided the 0.6510 (‘strong support’) level is not breached. Looking ahead, if the AUD clearly breaks above 0.6600, the next level to watch is 0.6660.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
