The next support levels for the AUD/USD in the next weeks, according to UOB Group FX Strategists, are 0.7400 and 0.7365.
Observation for 24 hours: “We expected the Australian dollar to fall yesterday, but we believe it ‘is unlikely to break the major support at 0.7445.’ The ease with which the Australian dollar broke through 0.7445 and dropped to 0.7417 was unexpected. While the quick loss is clearly oversold, it has room to continue, but a sustained collapse below 0.7400 is doubtful. For the time being, the next support level of 0.7365 is unlikely to be challenged. Resistance is at 0.7455, but a break below 0.7470 would signal that the recent slump has stabilized.”
Within the next 1-3 weeks: “We stated on Wednesday (07 July, spot at 0.7490) that the risk for the Australian dollar is shifting to the downside, but that the currency must first break through the major support level of 0.7445 before a protracted loss can be expected. ‘The chance for the AUD to break 0.7445 appears to be pretty substantial,’ we noted. Yesterday (08 July), the Australian dollar quickly broke through 0.7445 and dropped to 0.7417. The price activity indicates that the risk for the Australian dollar is obviously to the downside. The levels of 0.7400 and 0.7365 are important support levels to keep an eye on. As long as the AUD does not rise over 0.7500 (the’strong resistance’ level was at 0.7555 yesterday), the downside risk remains intact.”/n
