Major resistance at 0.6745 is not expected to come into view – UOB Group

Bias for Australian Dollar (AUD) has shifted to the upside, but the major resistance at 0.6745 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD/USD has shifted to the upside

24-HOUR VIEW: “While we indicated yesterday that ‘the bias for AUD is on the downside’, we pointed out that ‘the major support at 0.6655 is not expected to come into view’. We also pointed out that ‘there is another support level at 0.6665’. Our view was not wrong, as AUD dipped to a low of 0.6668 and then rebounded to close at 0.6698, up by 0.23%. Following yesterday’s price action, the bias appears to have shifted to the upside. This time around, the major resistance at 0.6745 is not expected to come into view (with minor resistance at 0.6725). Support is at 0.6685; a break below 0.6670 would mean that the upward bias has faded.”

1-3 WEEKS VIEW: “We have expected AUD to trade in a range of 0.6655 between 0.6745 since last Friday (09 Jan, spot at 0.6700). AUD mostly range-traded over the past several days, and we continue to hold the same view.”