**Australian Dollar Stalls Against Greenback as Uptrend Loses Steam**
The Australian dollar has entered a sideways trading pattern against the US dollar after losing its recent upward momentum, according to currency strategists at United Overseas Bank. Quek Ser Leang and Lee Sue Ann report that AUD/USD is currently oscillating within a narrow intraday band between 0.6920 and 0.6960, performing slightly above their initial forecasts.
The pair’s tentative upside push has now dissipated, prompting UOB analysts to revise their short-term outlook to a consolidation phase. Over the next one to three weeks, the currency pair is projected to remain range-bound between 0.6890 on the downside and 0.6975 on the upside.
This development affects forex traders positioned for continued Australian dollar strength and suggests reduced directional conviction in the near term. The sideways drift indicates neither bulls nor bears have sufficient momentum to break the established range.
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FXnCO Insight
** Traders should prepare for choppy, range-bound conditions in AUD/USD and consider fade-the-extremes strategies between 0.6890 and 0.6975 until a clear breakout materializes.
Source: FXStreet