The Australian Dollar (AUD) is facing potential downside pressure, with UOB Group FX strategists Quek Ser Leang and Peter Chia noting that it may drop below 0.6660 in the near future. While it is too early to determine if it will reach 0.6640, there is a possibility of further weakness in the currency.
In the 24-hour view, AUD is expected to trade sideways between 0.6685 and 0.6725, with a rebound in oversold conditions indicating that further weakening is unlikely. Despite dipping below 0.6680, it only reached a low of 0.6681 before rebounding, suggesting that there may be some support at this level.
Looking ahead to the 1-3 weeks view, there is still a possibility for AUD to drop below 0.6660, but reaching 0.6640 will depend on the momentum of the currency. A breach of 0.6755 would indicate that AUD is not declining further, with this level serving as a strong resistance point for the currency.
Overall, the outlook for the Australian Dollar remains uncertain, with potential for further downside pressure in the near term. Traders will need to closely monitor key levels such as 0.6660 and 0.6640 to gauge the strength of the currency and potential trading opportunities in the FX market.
As with any currency, factors such as economic data releases, geopolitical events, and changes in market sentiment can impact the movement of the Australian Dollar. It is important for traders to stay informed and adaptable in order to navigate the fluctuations of the forex market effectively.
In conclusion, the Australian Dollar is facing potential downward pressure, with the possibility of dropping below key support levels such as 0.6660 and 0.6640. Traders should remain vigilant and flexible in their trading strategies to capitalize on opportunities in the ever-changing FX market.
