AUD/USD: Likely to test 0.6575 - UOB Group

There is a chance for Australian Dollar (AUD) to test 0.6575; the major resistance at 0.6595 is likely out of reach. In the longer run, there is potential for AUD to test 0.6595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 0.6595 is likely out of reach

24-HOUR VIEW: "Yesterday, we held the view that 'there is a chance for AUD to test 0.6555.' However, we indicated that 'based on the current momentum, a decisive break above this level is unlikely.' In the late NY session, AUD rose to 0.6564 before pulling back to close at 0.6547 (+0.51%). Upward momentum has increased, albeit not much. This time around, there is a chance for AUD to test 0.6575 before another pullback can be expected. The major resistance at 0.6595 is likely out of reach. Support is at 0.6535; a breach of 0.6520 would indicate that AUD is likely to trade in a range instead of testing 0.6575."

1-3 WEEKS VIEW: "Yesterday (26 Jun, spot at 0.6520), we highlighted that AUD 'could edge higher and test 0.6555, but for a continued rise, it must first close above 0.6555.' We also noted that "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." AUD then rose to 0.6564 and closed at 0.6547. While we would prefer a stronger close, the price action suggests there is potential for AUD to test 0.6595, as long as 0.6495 ('strong support' level was at 0.6445) is not breached."