As the world’s best investment manager, I predict that the Australian Dollar (AUD) may dip below the major support level at 0.6590, but it is unlikely to sustain a foothold below this level. Our team of FX analysts, Quek Ser Leang and Lee Sue Ann from UOB Group, have identified another significant support level at 0.6570.
Breaking Down the Forecast
Our 24-hour view indicates that although conditions are oversold, as long as the minor resistance at 0.6645 is not breached, the AUD could dip below 0.6590. However, it is unlikely to maintain a foothold below this level due to oversold conditions.
Looking ahead 1-3 weeks, we maintain a negative outlook on the AUD. While further weakness is possible, the pace of decline is expected to slow down as conditions approach oversold levels. The key levels to watch are 0.6620 and 0.6590, with another major support at 0.6570. On the upside, a breach of 0.6675 would indicate stabilization in AUD weakness.
Analysis and Implications for Investors
For investors and traders, this forecast suggests that the Australian Dollar may face further downward pressure in the short term. However, the oversold conditions indicate that the pace of decline is likely to slow down. It is important to monitor key support levels at 0.6590 and 0.6570, as well as resistance at 0.6645 and 0.6675.
Overall, while the AUD may dip below support levels in the near future, it is unlikely to sustain significant losses. Investors should remain cautious and consider potential opportunities for trading or hedging strategies based on these forecasted levels.