Mild upward momentum is likely to lead to the Australian Dollar (AUD) edging higher. Any advance is unlikely to reach the major resistance at 0.6800, but nevertheless increasing upward momentum suggests AUD is likely to continue to rise to 0.6800, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

The next major resistance is at 0.6800

24-HOUR VIEW: “Yesterday, we indicated that ‘further range trading seems likely, probably in a range of 0.6725/0.6755.’ AUD subsequently traded between 0.6733 and 0.6752, closing largely unchanged at 0.6747 (+0.09%). Upward momentum seems to be building, albeit tentatively. Today, AUD is likely to edge higher. Given the mild upward momentum, any advance is unlikely to reach 0.6800. There is another resistance level at 0.6775. Support is at 0.6735; a breach of 0.6725 would mean that the mild upward pressure has faded.”

1-3 WEEKS VIEW: “We continue to hold the same as Monday (08 Jul, spot at 0.6745). As highlighted, increasing upward momentum suggests AUD is likely to continue to rise to 0.6800. Overall, only a breach of 0.6700 (‘strong support’ level previously at 0.6690) would indicate that the AUD strength that started early last week has come to an end.”