The Australian Dollar (AUD) is showing signs of potential rebound, yet the 0.6580 level is anticipated to present strong resistance. According to UOB Group FX analysts Quek Ser Leang and Peter Chia, the current AUD weakness appears overextended in both time and price. However, stabilization is only likely if the AUD breaches the 0.6615 mark.
24-Hour Outlook:
Following a sharp decline to 0.6511 last Thursday and a subsequent rebound, there was an expectation for further recovery. On Friday, it was noted that any advance would likely face significant resistance at 0.6580. Although the AUD did rebound, it reached only 0.6869 before easing to close at 0.6547, a gain of 0.14%. The tone remains somewhat positive, suggesting further rebound potential, but 0.6580 is expected to act as a strong barrier. Support levels are seen at 0.6535 and 0.6520.
1-3 Weeks Outlook:
The previous update from July 26, with the AUD at 0.6545, remains relevant. The recent weakness in the AUD seems to be overstretched in terms of both duration and magnitude. However, only a rise above 0.6615 will confirm that the weakness has stabilized. If this resistance level holds, there remains a low probability that the AUD could decline further to 0.6480.
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