AUD/USD: Expected to drop to 0.6850 – UOB Group

The Australian Dollar (AUD) is expected to decline to 0.6850; support at 0.6820 is unlikely to be threatened. The AUD has likely entered a phase of range trading, which is expected to be between 0.6820 and 0.6935, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

AUD has likely entered a range-bound trading phase

24 HOUR VIEW: “After the AUD rose to 0.6944 two days ago, we indicated yesterday that ‘there has been no further increase in momentum, and instead of continuing to rise today, the AUD is expected to trade in a sideways range of 0.6885/0.6935.’ Instead of trading sideways, the AUD fell to a low of 0.6858, closing at 0.6883 (-0.43%). Despite the decline, the bearish momentum only increases slightly Today, we expect the AUD to drop to 0.6850. “Main support at 0.6820 is expected to be threatened. Resistance levels are at 0.6900 and 0.6920.”

1-3 WEEK VIEW: “In our most recent narrative on Monday (September 30, pair at 0.6910), we stated that ‘although recent price action suggests AUD is likely to rise, it remains to be seen if there is enough momentum for the AUD reaches 0.6980.’ We added, ‘a break of 0.6860 (‘strong support’ level) would mean that the AUD is not advancing further. In NY trading, the AUD fell to a low of 0.6858 despite the slight break of our level.’ strong support’, the bullish momentum has largely dissipated. The AUD has likely entered a range-bound trading phase, and is expected to trade between 0.6820 and 0.6935 for the time being.”