The oversold decline in the Australian Dollar (AUD) could extend to 0.6560 before stabilization can be expected. Longer term, there is potential for AUD to continue falling to 0.6560, possibly 0.6520, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
AUD may slide towards 0.6520
24-HOUR VIEW: “We expected AUD to ‘continue falling’ yesterday. We noted that ‘the significant support level at 0.6585 may not be easy to break.’ However, the AUD broke below 0.6585, reaching a low of 0.6580. The AUD closed on a soft note at 0.6583 (-0.33%). Although oversold, the decline could extend to 0.6560 before a recovery can be expected. stabilization. A sustained break below 0.6560 is unlikely today. Resistance is at 0.6600; a break of 0.6615 would mean that weakness has stabilized.”
1-3 WEEK VIEW: “In our most recent narrative from last Thursday (Oct 24, spot at 0.6635), we highlighted that the AUD was ‘expected to continue falling, and the level to watch is significant support at 0.6585.’ Yesterday (Monday), AUD broke below 0.6585 (low has been 0.6580). which began earlier this month (as noted in the chart below) has stabilized. Until then, there is the potential for the AUD to continue falling to 0.6560, possibly 0.6525.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
