Sharp pullback in Australian Dollar (AUD) has scope to extend. Any decline is unlikely to reach 0.6600. For the time being, AUD is likely to trade between 0.6600 and 0.6685, UOB Group strategists note.

A break above 0.6665 is very likely

24-HOUR VIEW: “Yesterday, we expected AUD to trade in a range of 0.6625/0.6665. We did not expect the spike in volatility as AUD soared to 0.6689 before pulling back sharply to close largely unchanged (0.6648, -0.01%). The sharp pullback has scope to extend, but given the lackluster momentum, any decline is unlikely to reach 0.6600. Note that there is another support level at 0.6625. Resistance is at 0.6665, followed by 0.6680.”

1-3 WEEKS VIEW: “In our latest narrative from Wednesday (24 Jun, spot at 0.6640), we indicated that the current price action is likely part of a range-trading phase. We expected AUD to trade between 0.6600 and 0.6685. Yesterday, AUD rose a few pips above 0.6685, reaching a high of 0.6689. However, the advance was short-lived, as AUD pulled back to close largely unchanged (0.6648, -0.01%). The price action still appears to be part of a range-trading phase, and we continue to expect AUD to trade between 0.6600 and 0.6685.”