The Australian Dollar (AUD) is projected to trade within a range of 0.6740 to 0.6785, according to UOB Group FX analysts Quek Ser Leang and Peter Chia. While there is potential for the AUD to rise, it must surpass the 0.6800 mark to signal further advancement.
AUD Needs to Surpass 0.6800 to Continue Growing
24-HOUR VIEW:
Yesterday, analysts anticipated some strengthening of the AUD but noted that it was unlikely to reach 0.6800. The AUD did approach this level, hitting a high of 0.6799, before pulling back slightly and closing at 0.6760, a 0.19% increase. This pullback, in the context of overbought conditions, suggests that the AUD is more likely to trade within the 0.6740 to 0.6785 range today rather than continue strengthening.
1-3 WEEKS VIEW:
Analysts turned positive on the AUD early last week. In their latest update on Monday, they highlighted that increasing upward momentum suggested the AUD could rise to 0.6800. The AUD nearly reached this target yesterday, peaking at 0.6799. Despite the room for potential growth, breaking the 0.6800 barrier is essential for further gains. Given the current overbought conditions, it remains uncertain if the AUD can breach this level in the coming days. A breach of 0.6725, previously marked as strong support at 0.6700, would indicate that the recent AUD strength has ended.
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