13 Aug 2019
AUD/USD appears to have met quite a strong support at the 0.6680 region, suggested FX Strategists at UOB Group.
24-hour view: “As expected, AUD is not ready to transit into a ‘positive phase’ as yet. The rally only got as far at 0.6822 on Fri before a wave of selling brought AUD down to 0.6749 by NY close on Mon. The undertone is neutral here and AUD is likely to trade sideways today. Expect support at 0.6725 and resistance at 0.6820”.
Next 1-3 weeks: ““Our last narrative was that a ‘sustained push below 0.6800 could shift focus to 0.6715’. Since then, AUD struggled to recover despite oversold conditions and on Wed, AUD tumbled to fresh lows of 0.6678. At the same time, the v-shaped recovery that followed suggested that the last of AUD bulls may have capitulated. Directional indicators though still negative are gradually turning higher. From here, improving upside momentum suggests AUD to grind higher towards its resistance at 0.6800. It has to break the 0.6845 ‘key resistance’ in order to indicate that a mid-term low is in place at 0.6678. On the downside, we expect supports at 0.6715 and 0.6680.”
Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this website or linked to from this website are provided as general market commentary and do not constitute investment advice. AUSFOREX does not accept liability for any loss or damage, including any loss or profit, which may arise directly or indirectly from use of or reliance on such information.