AUD/USD: Major support at 0.6655 is not expected to come into view – UOB Group

Bias for Australian Dollar (AUD) is on the downside, but the major support at 0.6655 is not expected to come into view (there is another support level at 0.6665). 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 Peter Chia note.

Likely to trade between 0.6655 and 0.6745

24-HOUR VIEW: "We indicated yesterday that 'there is a chance for AUD to test 0.6670'. However, we stated that 'the increase in downward momentum is not sufficient to indicate a sustained decline, and the major support at 0.6655 is not expected to come into view'. We also stated that 'resistance is at 0.6700, followed by 0.6715'. We were not wrong, as AUD rose to 0.6702, dipped to 0.6673 before closing largely unchanged at 0.6683 (+0.02%). While there remains a slight downward bias today, we still do not expect the major support at 0.6655 to come into view. Note that there is another support level at 0.6665. Today’s resistance levels are at 0.6690 and 0.6705."

1-3 WEEKS VIEW: "In our latest narrative from last Friday (09 Jan, spot at 0.6700), we highlighted that 'the current price movements are likely part of a range trading phase between 0.6655 and 0.6745'. AUD traded in a relatively quiet manner over the past few days and our view remains unchanged for now."