Australian Dollar Forecast: Potential Decline to 0.6650
The Australian Dollar (AUD) is facing the possibility of further decline, with major support levels at 0.6650 and 0.6620 being closely watched by analysts at UOB Group. Here is a breakdown of their insights:
24-Hour View:
- Yesterday’s forecast of a retest of the 0.6700 level did not materialize, as AUD closed at 0.6703 in NY trade.
- However, early Asian session trading saw a sharp drop in AUD, indicating a rapidly increasing downward momentum.
- The analysts predict a potential decline to 0.6650, with the major support at 0.6620 likely out of reach today.
- For the downward momentum to continue, AUD must stay below 0.6715, with minor resistance at 0.6700.
1-3 Weeks View:
- Previous forecasts have indicated a bias for AUD weakness, with the currency dropping to 0.6698 recently.
- The current price action suggests a rapid increase in momentum, leading to further potential AUD weakness.
- The key levels to monitor are 0.6650 and 0.6620, indicating the potential direction of the currency.
- An upside break above 0.6740 could signal a stabilization of AUD weakness that began earlier this month.
Analysis:
The forecasts provided by UOB Group’s FX analysts indicate a bearish outlook for the Australian Dollar in the near term. The key levels of 0.6650 and 0.6620 are crucial in determining the future direction of the currency. With a rapidly increasing downward momentum, investors and traders should monitor these levels closely to gauge the potential for further AUD weakness.
For individuals with exposure to AUD-denominated assets or those looking to trade the currency, understanding these forecasts can help in making informed decisions. By staying informed about the market trends and key support/resistance levels, individuals can better navigate the fluctuations in the Australian Dollar and protect their financial interests.