Overview of AUD/USD's Current Trajectory Economists Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group have forecasted potential further gains for the Australian Dollar against the U.S. Dollar (AUD/USD), targeting the 0.6745 level in the short-term. This outlook is supported by the currency pair's recent performance, where an unexpected surge in strength was observed, particularly last Friday. As the AUD/USD pair targets the 0.6745 resistance level, market participants will closely monitor its ability to sustain above critical support thresholds. The pair's recent price action signals a continuation of its upward trajectory, provided it maintains above the 0.6620 mark. Traders and investors will likely keep a watchful eye on both technical indicators and broader market trends that could influence the direction of this currency pair in the near term.
Key Observations and Resistance Levels
- 24-hour Perspective: The AUD's unexpected rally last Friday, which defied earlier expectations of range-bound trading, indicates a strong momentum buildup. This momentum is likely to bolster the AUD further, although the major resistance at 0.6745 might be challenging to reach immediately. Another resistance level to watch is at 0.6715. To sustain this upward momentum, the AUD should maintain above the minor support level at 0.6640, with an additional support noted at 0.6660.
- 1-3 Week Forecast: The recent breach of the previously established ‘strong support’ level at 0.6575 (with a low of 0.6571) had initially shifted the stance on AUD from positive to neutral. The forecast range was between 0.6530 and 0.6665. However, the AUD’s subsequent rally and strong closing at 0.6676 (+1.08%) have invalidated the range-bound view, indicating that the mid-month strengthening trend for the AUD is still ongoing. Provided the AUD remains above 0.6620, it is poised to continue its ascent towards the significant resistance at 0.6745.
Technical Analysis and Market Dynamics
The current market dynamics suggest a robust and resilient trend for the AUD/USD pair. This bullish sentiment is reinforced by the pair's ability to rebound and close strongly above key support levels. The observed price action underscores the currency pair's underlying strength and the potential for continued upward movement.