UOB analysts warn the Australian dollar remains under pressure after a sharp 1.22% selloff, targeting 0.6835 if resistance holds.
The Australian dollar plunged 1.22% to 0.6908 against the US dollar in a sudden selloff, leaving the pair deeply oversold but still biased lower. UOB analysts note the move broke key support levels, with no signs of stabilization yet.
Prior expectations for a downside bias had not materialized earlier, but the abrupt drop exceeded forecasts. The pair now faces resistance at 0.6960, with a potential break below 0.6900 intraday, though oversold conditions may limit sustained declines.
Over a 1-3 week horizon, the impulsive decline suggests further downside, with 0.6835 as a critical support level if 0.7000 caps upside.