The Australian dollar remains under sustained pressure against the US dollar, with UOB currency strategists Quek Ser Leang and Lee Sue Ann warning that downside momentum continues to build following recent declines. The pair is currently trading just above the critical 0.7120 support level, which traders are watching closely as a potential breakdown point. If AUD/USD definitively breaches 0.7120, the strategists indicate the currency pair could quickly accelerate lower toward 0.7095. On the upside, immediate resistance has been identified in the 0.7150 to 0.7165 zone, limiting near-term recovery attempts. The outlook suggests the Aussie remains vulnerable to further losses as selling pressure persists. Forex traders with AUD exposure should monitor these technical levels carefully as any sustained move below support could trigger additional selling momentum and stop-loss orders.
FXnCO Insight
Traders should prepare for potential downside acceleration if 0.7120 breaks, with tight stops recommended for long AUD positions ahead of a possible move toward 0.7095.
Source: FXStreet