AUD/USD: A break above 0.6685 to lead to 0.6705/0.67816 – UOB Group

The Australian Dollar (AUD) is likely to trade sideways between 0.6630 and 0.6685. AUD is likely to edge higher; the likelihood of it breaking clearly above the major resistance zone of 0.6705/0.67816 is low for now.  

Major resistance zone exists at 0.6705/0.6715

24-HOUR VIEW: “We expected AUD to trade in a 0.6625/0.6675 range last Friday. However, after dipping to a low of 0.6620, AUD rose sharply, reaching a high of 0.6685. AUD closed on a firm note at 0.6670 (+0.34%). The sharp rise appears to be overextended, and AUD is unlikely to advance much further. Today, it is more likely to trade sideways between 0.6630 and 0.6685.”

1-3 WEEKS VIEW: “In our most recent narrative from last Monday (24 Jun, spot at 0.6640), we were of the view that ‘the current price action is likely part of a range-trading phase,’ and we expected AUD to trade between 0.6600 and 0.6685. AUD traded within the range until last Friday, when it rose, touching 0.6685. There has been a slight increase in upward momentum, but not enough to suggest the start of a sustained advance. From here, as long as AUD remains above 0.6610, it is likely to edge higher, but the likelihood of it breaking clearly above the major resistance zone of 0.6705/0.6715 is low for now.”