The Australian Dollar is facing fresh downside pressure against the US Dollar with strategists at United Overseas Bank projecting a potential move toward 0.6980. Currency analysts Quek Ser Leang and Lee Sue Ann have maintained their bearish outlook on AUD/USD following a period of subdued trading activity that saw the pair consolidate near the 0.7020 level.
The downward revision signals growing concern about the Aussie’s near-term trajectory as the pair struggles to build momentum above recent range-bound levels. Traders holding long AUD positions may face headwinds as technical indicators point toward further weakness. The projected decline of roughly 40 pips from current levels would mark a continuation of the pair’s inability to establish firm support above the psychological 0.7000 threshold.
Market participants across forex desks should monitor this level closely as a breakdown could accelerate selling pressure and trigger stop-loss orders clustered below round-number support.
FXnCO Insight
Traders should prepare for potential downside toward 0.6980 on AUD/USD and consider tightening stops on long positions above 0.7020.
Source: FXStreet