The Australian Dollar (AUD) is under significant downward pressure, with the possibility of dipping below 0.6680, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann. The analysts suggest that the next support level at 0.6640 is unlikely to be tested today.
24-Hour View:
The AUD was expected to trade within a range of 0.6710 to 0.6750 yesterday. However, it fell to a low of 0.6698 and closed weaker at 0.6706, marking a decline of 0.33%. The downward momentum has intensified, and the currency could drop below 0.6680. The analysts do not anticipate the 0.6640 support level coming into play today. On the upside, resistance at 0.6735 is expected to be strong enough to limit any intraday rebound, with minor resistance at 0.6720.
1-3 Weeks View:
Observations from two days ago (July 17), when the AUD was at 0.6730, indicated that upward momentum had waned and downward pressure had slightly increased. Although a downward bias was anticipated, it was noted that the momentum might not be sufficient to breach the key support level at 0.6680. Yesterday’s drop to 0.6698 has seen further increase in downward momentum, but it is premature to conclude if it will extend to 0.6640. On the upside, a breach of the 0.6755 level, previously seen as strong resistance at 0.6775, would suggest a halt in the AUD’s decline.
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