According to top FX analysts Quek Ser Leang and Peter Chia from UOB Group, the Australian Dollar (AUD) may be ready for a rebound after experiencing a period of weakness. However, any upward movement is likely to face strong resistance at the 0.6580 level. The analysts suggest that the recent decline in AUD has been overextended in both time and price, indicating a potential stabilization if the currency can break above 0.6615.
Stabilization Hinges on Crossing 0.6615 Threshold
Looking at the short-term view, the analysts note that AUD recently experienced a sharp decline but has since shown signs of bouncing back. Despite the oversold conditions suggesting room for further rebound, resistance is expected at 0.6580, with minor resistance at 0.6560. Key support levels are identified at 0.6525 and 0.6510.
On a longer-term basis, the experts highlight that the negative outlook for AUD could be reversed if the currency manages to breach the 0.6615 level. Failure to do so may result in further declines towards 0.6480, although the probability of this scenario is considered low unless the strong resistance level at 0.6630 is surpassed.
Expert Analysis and Breakdown
Overall, the analysis suggests that the Australian Dollar (AUD) is at a critical juncture, with the potential for a rebound if it can break above 0.6615. However, strong resistance levels at 0.6580 and 0.6630 may pose challenges to any upward movement. Traders and investors should closely monitor these key levels to assess the future direction of AUD and adjust their positions accordingly.