According to UOB Group analysts Quek Ser Leang and Lee Sue Ann, the Australian Dollar (AUD) is expected to consolidate within a range of 0.6760/0.6810. However, in the longer run, if AUD breaks below 0.6730, it could indicate that 0.6870 is not likely to be reached.
Potential for AUD to Rise After Breaching 0.6810
24-Hour View: Yesterday showed a slight increase in upward momentum for AUD, with a test of 0.6815 anticipated. As predicted, AUD reached 0.6813 before closing at 0.6785 (-0.13%). The currency is now expected to enter a consolidation phase, with a trading range of 0.6760/0.6810 projected for today.
1-3 Weeks View: Despite a rise to 0.6813, there has been no significant increase in momentum for AUD. If the currency breaks below 0.6730, the previously mentioned target of 0.6870 may not be achievable in the near future.
Analysis:
The forecast for the Australian Dollar (AUD) suggests a period of consolidation within a specific range, with potential for a rise if 0.6810 is breached. Traders and investors should monitor the key support level of 0.6730, as a break below this level could impact the currency’s upward momentum towards 0.6870. It is recommended to stay informed on market developments and adjust trading strategies accordingly to capitalize on potential opportunities.