According to top UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, the Australian Dollar (AUD) is facing a critical level at 0.6480. If this support is breached, the next level to watch is at 0.6425. However, the analysts are uncertain if the AUD can maintain a foothold below 0.6480.
24-Hour View: AUD Plunges in Early Asian Trade
In the latest 24-hour view, AUD closed at 0.6539 in NY and experienced a sharp decline in early Asian trade. While the drop may seem overdone, as long as 0.6540 is not breached, the AUD could break below the major support at 0.6480. The next support level to watch is at 0.6450.
1-3 Weeks View: Further Weakness in AUD?
Looking ahead 1-3 weeks, the analysts note that the recent weakness in AUD may be overextended in terms of time and price. However, a breach of 0.6615 is needed to indicate stabilization of this weakness. The AUD plunged in early Asian trade, suggesting further weakness, but the decline may still be overextended. It is uncertain if the next support at 0.6425 will come into view, with a minor support level at 0.6450. On the upside, strong resistance is now at 0.6565.
Analysis and Breakdown:
In simple terms, the Australian Dollar is currently at a critical juncture. If it breaks below 0.6480, the next support level to watch is at 0.6425. This could indicate further weakness in the AUD. However, if the AUD manages to maintain above 0.6480, it may find some stability. Keep an eye on the key levels mentioned by the analysts to gauge the future direction of the Australian Dollar.