Welcome to the latest update on the Australian Dollar (AUD) movement by the expert team at UOB Group. According to FX strategists Quek Ser Leang and Peter Chia, the AUD is showing a slight increase in momentum. In order for the AUD to make further advances towards 0.6660, it must break above the key level of 0.6600.
Breaking Down the Next Level to Watch
Looking at the 24-hour view, the AUD was expected to consolidate between 0.6545 and 0.6595, but instead traded in a higher range of 0.6565/0.6505. Closing slightly lower at 0.6586 (-0.10%), the AUD did not show significant momentum in either direction. The forecast for the day ahead is for the AUD to trade sideways in a range of 0.6560/0.6600.
For the 1-3 weeks view, the team maintains their previous assessment that the AUD must break and stay above 0.6600 for further advances to be expected. While there has been a slight increase in momentum, a sustained advance has not yet been confirmed. The likelihood of the AUD breaking above 0.6600 will rise in the coming days as long as the strong support level of 0.6520 (previously at 0.6510) holds. Looking ahead, if the AUD successfully breaks above 0.6600, the next level to monitor is 0.6660.
Analysis: The AUD is currently experiencing a slight uptrend, but a clear break above 0.6600 is needed for further gains. Traders should pay close attention to the support level at 0.6520 and monitor the price action in the next few days for potential opportunities. Breaking above 0.6600 could signal a move towards 0.6660, offering potential trading opportunities for investors.