AUD/USD: Set to test 0.6555 - UOB Group

There is a chance for Australian Dollar (AUD) to test 0.6555 against US Dollar (USD); current momentum suggests a decisive break above this level is unlikely. In the longer run, AUD could edge higher and test 0.6555; for a continued rise, it must first close above 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

For a continued rise, it must first close above 0.6555

24-HOUR VIEW: "Yesterday, we expected AUD to 'trade in a sideways range of 0.6465/0.6515.' AUD then traded between 0.6485 and 0.6515. AUD closed at 0.6514 before rising in the early Asian trade today. There has been a rapid buildup in momentum, and there is a chance for AUD to test 0.6555. Based on the current momentum, a decisive break above this level is unlikely. On the downside, support levels are at 0.6505 and 0.6485."

1-3 WEEKS VIEW: "Two days ago (24 Jun, spot at 0.6470), we highlighted that 'the current price movements are likely part of a broad range trading phase, probably between 0.6385 and 0.6555.' Yesterday, AUD rose and closed at 0.6514. Upward momentum is building, albeit a bit tentative for now. From here, AUD could edge higher and test 0.6555, but for a continued rise, it must first close above 0.6555. The probability of AUD closing above 0.6555 is not high, but it will increase in the next few days as long as the 'strong support' level at 0.6445 is not breached."