There is scope for the Australian dollar (AUD) to fall below 0.6660; it is too early to determine whether 0.6640 is within reach, note UOB Group FX strategists Quek Ser Leang and Peter Chia.
It is ready to test 0.6640
24-HOUR VIEW: “We indicated last Friday that the AUD could drop below 0.6680. We also indicated that ‘the next support at 0.6640 is highly unlikely to come into play.’ However, the AUD fell less than expected, only hitting a low of 0.6681. The AUD bounced at the open today. The bounce in oversold conditions and slowing momentum suggest that further weakness is unlikely. Today, the AUD is more likely to trade sideways between 0.6685 and 0.6725.”
1-3 WEEK VIEW: “Our update from last Friday (July 19, pair at 0.6700) remains valid. As highlighted, while there is scope for the AUD to fall below 0.6660, it is too early to determine whether there is enough momentum for it to reach 0.6640. On the upside, a break of 0.6755 (no change at the ‘strong resistance’ level) would indicate that the AUD is not declining any further.”
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.
