OctaFX | OctaFX Forex Broker
Open trading account
Back

AUD/USD: downside pressure alleviated above 0.6950 – UOB

In opinion of FX Strategists at UOB Group , a break above 0.6950 in AUD/USD is expected to mitigate the ongoing bearish pressure.

Key Quotes

24-hour view: “Price action in AUD overnight was more subdued than thought, in a tight 0.6885/0.6909 range. Upside momentum has fizzled out and the AUD is probably stuck in a range-bound trade for now. Look for 0.6920 to cap while supports are at 0.6890 followed by 0.6875. A break below 0.6875 may also open up 0.6850 though the latter is unlikely to be materially challenged at this juncture.”

Next 1-3 weeks: “The major support at 0.6820 held as expected, with AUD only getting as low as 0.6850 in the past 3 sessions. Although AUD has recovered to about 0.6900 currently, upside momentum remains remain modest at best. As before, we maintain that ‘only a move back above 0.6950 would indicate the current weakness has stabilized’ and it is probably too early to tell that AUD is out of the woods. On the downside, look for supports at 0.6850 and 0.6820 and if AUD was to register a NY closing below 0.6820, it would indicate that the late December high of 0.7032 is a more significant top than currently expected.”

US Dollar Index Price Analysis: Under pressure below the 200-day SMA at 97.70

The index has failed once again to break above the 97.60 region, where sits the 55-day SMA. The inability to surpass this area in the near-term carrie
Read more Previous

AUD/USD rebounds toward 0.6900 as focus shifts to US-China phase-one deal details

The AUD/USD pair edged lower in the early trading hours of the European session and touched its worst level in five days at 0.6883. However, with the
Read more Next
Start livechat