The Australian Dollar (AUD) has shown a slight increase in momentum recently, but for further advances towards 0.6660, it must break clearly above 0.6600, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. In the 24-hour view, AUD is expected to trade sideways within a range of 0.6560/0.6600. The 1-3 weeks view suggests that AUD needs to break and stay above 0.6600 to signal a sustained advance, with the next level to watch being 0.6660. However, this will only happen if the strong support level of 0.6520 is not breached in the coming days.
In the short term, AUD is expected to consolidate between 0.6545 and 0.6595, but it traded in a higher range of 0.6565/0.6505, closing slightly lower at 0.6586. The lack of significant price action has not resulted in an increase in either downward or upward momentum. The 24-hour view predicts that AUD will continue to trade sideways, possibly within a range of 0.6560/0.6600. This stable trading range may persist until there is a clear break above 0.6600.
Looking ahead, the 1-3 weeks view maintains the same outlook as the recent price action has shown a slight increase in momentum, but not enough to signal a sustained advance. For AUD to make further advances, it must break and hold above 0.6600. The likelihood of this happening in the next few days is higher if the strong support level of 0.6520 is not breached. If AUD manages to clear the 0.6600 barrier, the next level to watch is 0.6660. This scenario is contingent upon the support level holding and AUD maintaining its current momentum.
In conclusion, the Australian Dollar (AUD) is showing signs of increased momentum, but a clear break above 0.6600 is needed for further advances towards 0.6660. The short-term view suggests that AUD will continue to trade within a stable range of 0.6560/0.6600, while the 1-3 weeks view highlights the importance of breaking and holding above 0.6600 for sustained upward movement. Traders should keep a close eye on the support level of 0.6520 and be prepared for potential movements in the coming days.Overall, the technical analysis points to a potential breakout in the Australian Dollar (AUD) if key levels are breached, with 0.6600 and 0.6660 being the levels to watch for potential price movement.
