AUD/USD: Buildup in momentum is fading – UOB Group
Australian Dollar (AUD) is expected to trade with a downward bias; mild momentum suggests any decline is limited to a test of 0.6230. In the longer run, buildup in momentum is fading; a break below 0.6230 would mean that AUD is likely to trade in a range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD is expected to trade with a downward bias
24-HOUR VIEW: "Our expectation for AUD to trade with a 'downward bias' yesterday did not materialise. We continue to detect a slight increase in downward momentum and expect AUD to trade with a downward bias today. Given the mild downward momentum, any decline is limited to a test of 0.6230. On the upside, resistance levels are at 0.6290 and 0.6310."
1-3 WEEKS VIEW: "Our more recent narrative was from last Thursday (06 Feb, spot at 0.6280), wherein 'upward momentum is beginning to build, and if AUD closes above 0.6310, it could trigger an advance to 0.6355.' Since then, AUD traded in a relatively quiet manner, and the buildup in momentum is fading. From here, if AUD breaks below 0.6230 (‘strong support’ level previously at 0.6200), it would mean that AUD is likely to trade in a range."
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