The Australian dollar (AUD) is likely to continue to rise; 0.6955 is likely out of reach for now. The outlook for the AUD remains positive, and it could advance further to 0.6955, say UOB Group FX strategists Quek Ser Leang and Peter Chia.
The bullish target is at 0.6955
24-HOUR VIEW: “Our view that AUD would trade sideways yesterday was incorrect. Instead of trading sideways, AUD spiked to 0.6894, and continues to rise in early Asian trade today. Having broken above 0.6900, AUD is likely to continue higher, although 0.6955 is likely out of reach for now (there is another resistance level at 0.6930). To maintain momentum, AUD needs to stay above 0.6850 (minor support is at 0.6870).”
1-3 WEEK VIEW: “We have maintained a positive view on the AUD since early last week. In our most recent narrative on last Friday (September 20, spot at 0.6800), we highlighted that “while there is still room for the AUD to rise further, it may not have enough momentum to challenge the significant resistance at 0.6870.” Yesterday, the AUD took off and broke above 0.6870. Today, it surged above another significant resistance level at 0.6900. The break of the resistance levels is accompanied by strong bullish momentum, and we remain positive on the AUD, anticipating a further advance to 0.6955. The positive outlook remains intact as long as 0.6820 is not broken (the ‘strong support’ level was at 0.6770 yesterday).”
Source: Fx Street
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