According to FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann, further downside momentum could see AUD/USD retesting the 0.6800 region in the next weeks.
24-hour view: “Our expectations for AUD to ‘trade between 0.6900 and 0.6995’ yesterday were incorrect as it cracked 0.6900 and plunged to 0.6829 before rebounding. The rapid decline appears to be overdone but AUD could retest the 0.6830 level. The next support at 0.6800 is unlikely to come under threat. Resistance is at 0.6900 followed by 0.6925.”
Next 1-3 weeks: “Yesterday (12 May, spot at 0.6930), we highlighted that AUD has close below 0.6900 within these 1 to 2 days or the chance for a sustained decline would diminish quickly. AUD subsequently plummeted to 0.6829 before rebounding to close at 0.6858 (-1.20%). The boost in downward momentum suggests AUD could weaken to 0.6800. The downward pressure is intact as long as AUD does not move above 0.6960 (‘strong resistance’ level).”
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.