AUD/USD: Potential for AUD to test 0.6535 – UOB Group

There is potential for AUD to test 0.6535; mild momentum suggests a clear break above this level is unlikely. In the longer run, bias remains on the upside, but it remains to be seen if AUD can break clearly above 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A clear break above 0.6535 is unlikely

24-HOUR VIEW: "We noted yesterday that 'momentum indicators are mostly flat, and further sideways trading appears likely today, probably in a range of 0.6480/0.6520.' However, AUD edged to a high of 0.6533 before easing to close at 0.6518 (+0.35%). There has been a slight increase in momentum. Today, there is potential for AUD to test 0.6535. Given the current mild momentum, a clear break above this level is unlikely. The major resistance at 0.6555 is also unlikely to come under threat. Support is at 0.6500; a breach of 0.6485 would indicate that the current mild upward pressure has eased."

1-3 WEEKS VIEW: "Last Tuesday (03 Jun, spot at 0.6490), we highlighted that the recent 'price action suggests AUD could continue to rise and test the significant resistance level at 0.6540.' After AUD rose to 0.6538, we highlighted last Friday (06 Jun, spot at 0.6510) that 'the bias remains on the upside, but it remains to be seen if AUD can break clearly above 0.6555.' Our narratives remain unchanged. Overall, only a breach of 0.6470 (‘strong support’ level previously at 0.6455) would mean that the upside bias has faded."