The Australian Dollar’s Double-Top Bearish Reversal Begins, Potential Further Downside Towards 0.6640 – Expert Analysis
The latest report from OCBC FX strategists Frances Cheung and Christopher Wong indicates that the Australian Dollar (AUD) is poised for a double-top bearish reversal. The pair is currently trading at 0.6715 levels, with bullish momentum on the daily chart fading and RSI falling. A recent pullback may have found support at 0.67 (21 DMA), but a decisive break could open the door for further downside towards 0.6640. Key resistance levels to watch are at 0.6730 and 0.6790.
The 2Q GDP data released this morning was in line with estimates, and services PMI held up well. With domestic data out of the way, the AUD is expected to react to equity market sentiments and movements in the USD in the coming sessions.
Analysis and Breakdown:
In simple terms, the Australian Dollar is facing a potential downturn, with key levels to watch at 0.67, 0.6730, and 0.6790. If the current support at 0.67 is broken decisively, we could see the AUD drop further towards 0.6640. This could be influenced by factors such as equity market sentiment and movements in the USD. Keep a close eye on these developments if you are involved in the financial markets or have investments tied to the Australian Dollar.