Continuation of bullish momentum appears in store for AUD/USD on the near-term horizon, according to Economist Lee Sue Ann and Market Strategist Quek Ser Leang of UOB Group.
24-hour outlook: Our view that AUD/USD would trade in a range between 0.6470 and 0.6535 yesterday was incorrect as it fell to a low of 0.6461. Despite the decline, bearish momentum has barely increased. That said, there is room for AUD/USD to turn lower, but it is unlikely to break clearly below 0.6440. To the upside, if AUD/USD breaks above 0.6510 (minor resistance is at 0.6495), it would indicate that the current slight bearish pressure has eased.
Next 1-3 weeks: We continue to maintain the same opinion as yesterday (November 16, AUD/USD at 0.6510). As highlighted, although AUD/USD is likely to continue advancing, the bullish momentum is not that strong for now, and the main resistance at 0.6585 might not appear anytime soon. The bullish bias is intact as long as AUD/USD remains above 0.6400 (unchanged from yesterday’s “strong support” level).
Source: Fx Street
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