0.7060 Cap in Sight: Australian Dollar Has Room to Gain Against US Dollar – UOB

AUD/USD could test 0.7060, according to UOB’s Quek Ser Leang and Lee Sue Ann. After touching 0.7055 in early Asian trading, the pair has moved into a slightly higher intraday range. They see major resistance at 0.7070 as out of reach, with support at 0.7020. Over 1–3 weeks, they caution that momentum is slowing: a break below 0.6995 would rule out 0.7070 coming into view.

Australian Dollar Edges Higher Towards Nearby Resistance

"24-HOUR VIEW: We expected AUD to “range-trade between 0.7005 and 0.7035” yesterday. AUD then traded within a higher range of 0.7010/0.7040 and closed at 0.7025 (+0.12%). During the early Asian session today, AUD appeared to have popped to a high of 0.7055. Upward momentum is building, but not significantly. From here, there is scope for AUD to test 0.7060. The major resistance at 0.7070 is likely out of reach. Support is at 0.7020."

"1-3 WEEKS VIEW: Following our positive AUD view from the middle of last week, we highlighted yesterday (27 Oct, spot at 0.7020) that “upward momentum is starting to slow, and a break below 0.6995 (‘strong support’ level) would indicate that 0.7070 is not coming into view.” Although AUD popped to a high of 0.7055 earlier, it remains to be seen whether 0.7070 is coming into view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)