AUD/USD may drift lower and test 0.6670 – UOB Group

Australian Dollar (AUD) may drift lower and test 0.6670; a break of this level is not ruled out, but any further decline is unlikely to reach 0.6640. In the longer run, AUD is likely to range-trade for now, most likely between 0.6640 and 0.6730, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Any further decline is unlikely to reach 0.6640

24-HOUR VIEW: “AUD rose to a high of 0.6707 last Friday and then pulled back quickly to close modestly higher at 0.6692, up by 0.27%. The slight increase in downward momentum suggests AUD could drift lower and test 0.6670. While a break below this level is not ruled out, based on the current momentum, any further decline is unlikely to reach the major support at 0.6640. Resistance is at 0.6695, followed by 0.6710.”

1-3 WEEKS VIEW: “Although AUD soared late last month to a 14-month high of 0.6727, it has since struggled to build on those gains. Upward momentum has eased, and this, combined with overbought conditions suggests AUD is likely to range-trade for now, most likely between 0.6640 and 0.6730.”