The Australian Dollar (AUD) has room to rise above 0.6755, though overbought conditions suggest it may struggle to maintain a position above this level. Nevertheless, increasing upward momentum indicates the AUD is likely to continue climbing towards 0.6800, according to UOB Group analysts.
24-Hour View:
On Friday, analysts noted that the “upward momentum has increased, albeit not much,” and predicted the AUD would edge higher but encounter strong resistance at 0.6755. As anticipated, the AUD reached a high of 0.6753. While there is potential for the AUD to surpass 0.6755 today, overbought conditions suggest it may not sustain a foothold above this level. Additionally, the resistance at 0.6770 is expected to hold. Support levels are identified at 0.6730 and 0.6715.
1-3 Weeks View:
In their update last Thursday, when the AUD was at 0.6710, analysts indicated that if the AUD could surpass 0.6755, it might continue to rise to 0.6800. On Friday, the AUD approached this target, peaking at 0.6753. Although it has not clearly breached 0.6755, the increasing upward momentum suggests a likely continuation to 0.6800. A breach of 0.6690, previously set at 0.6665 as a “strong support” level, would signal the end of the AUD’s strength that began early last week.
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