AUD/USD is set to dip below 0.6680 – UOB Group

The Australian Dollar (AUD) could dip below 0.6680; the next support at 0.6640 is highly unlikely to come into view today, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

The next support below 0.6680 is at 0.6640

24-HOUR VIEW: “We expected AUD to trade in a sideways range of 0.6710/0.6750 yesterday. However, it dropped to a low of 0.6698, closing on a soft note at 0.6706 (-0.33%). The decline has gathered momentum, and AUD could dip below 0.6680. The next support at 0.6640 is highly unlikely to come into view today. On the upside, 0.6735 is likely strong enough to cap any intraday rebound. Minor resistance is at 0.6720.”

1-3 WEEKS VIEW: “Two days ago (17 Jul, spot at 0.6730), we noted that ‘not only has the recent upward momentum faded, but downward momentum has also increased slightly.’ We expected AUD to trade with a downward bias, but we pointed out that ‘at this time, it does not appear to have enough momentum to break the major support at 0.6680.’ Yesterday, AUD fell to a low of 0.6698. Downward momentum has increased further, albeit not much. While there is scope for AUD to drop below 0.6680, it is too early to determine if there is enough momentum for it to reach 0.6640. On the upside, a breach of 0.6755 (‘strong resistance’ level previously at 0.6775) would indicate that AUD is not declining further.”