Australian Dollar (AUD) is likely to trade in a sideways range of 0.6430/0.6495. In the longer run, downward momentum is slowing; a breach of 0.6520 would indicate that AUD is not breaking below 0.6405.
Downward momentum is slowing
24-HOUR VIEW: “In NY trade last Friday, AUD soared to 0.6493, pulled back to 0.6438 before closing at 0.6465 (+0.79%). The price movements did not result in any significant increase in upward momentum. Rather than continuing to rise, AUD is more likely to trade sideways today, probably between 0.6430 and 0.6495.”
1-3 WEEKS VIEW: “Last Thursday (31 Jul, spot at 0.6445), we indicated that AUD ‘could potentially break below 0.6405 and test June’s low, near 0.6375.’ We also indicated that ‘to maintain the momentum buildup, AUD must hold below 0.6520 (‘strong resistance’ level).’ After dropping to a low of 0.6419 on Friday, AUD rose sharply, reaching a high of 0.6493. Downward momentum is slowing, a breach of 0.6520 would indicate AUD is not breaking below 0.6405.”