The Australian Dollar (AUD) can trade sideways between 0.6700 and 0.6745. In the longer term, there is an opportunity for the Australian dollar to test the important resistance at 0.6765, noted UOB Group FX analysts Kwik Sir Liang and Peter Chia.
The Australian dollar is expected to rise in the coming days
24-hour view: “The Australian dollar rose to a high of 0.6747 in the late Asian session yesterday, then traded mostly sideways for the remainder of the session. The price action did not lead to any increase in bullish momentum, and the Australian dollar could continue to trade sideways today, likely between 0.6700 and 0.6745.”
1-3 week view: “Yesterday, the AUD tested resistance at 0.6745 (high at 0.6747) before pulling back. Bullish momentum is building, but not strong enough to indicate a continuation of the rally yet. However, as long as the ‘strong support’ at 0.6680 is not breached, there is a chance the AUD will rise over the coming days and test the important resistance level at 0.6765.”
