UOB highlights sharp selloff in AUD/USD, sees risk to 0.6835
AUD/USD plunged 1.22% to 0.6908, leaving the pair deeply oversold but with further downside risk, according to UOB analysts. They note potential for a brief intraday break below 0.6900, targeting 0.6835.
United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann warn that AUD/USD remains biased lower after an abrupt 1.22% drop to 0.6908. The pair is deeply oversold, but they see risk of a further decline toward 0.6835.
On an intraday basis, a break below 0.6900 is possible, though the analysts do not expect it to sustain at those levels. The selloff opens the door for continued weakness in the Australian dollar against the US dollar.
No specific catalyst was cited in the report, but the technical picture suggests bearish momentum is intact.
Source: FXStreet Forex News