Instead of continuing to drop, Australian Dollar (AUD) is more likely to trade in a range of 0.5945/0.6110 vs US Dollar (USD). In the longer run, further declines are not ruled out; given the deeply oversold conditions, it is unclear if AUD can reach the next support at 0.5870, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Further declines are not ruled out
24-HOUR VIEW: "Following the dramatic plunge last Friday, AUD continued to decline yesterday, albeit at a slower pace, closing lower by 0.94% at 0.5988. The sharp drop appears to be overdone. This, combined with early sign of slowing momentum indicates that instead of continuing to drop, AUD is more likely to trade in a range of 0.5945/0.6110 today."
1-3 WEEKS VIEW: "In our latest update from last Friday, 05 Apr, when AUD was at 0.6330, we indicated that AUD 'must break and hold above the significant resistance at 0.6410 before further advances can be expected.' Not only did AUD not break above 0.6410, but it also staged a dramatic drop over the past two days. Although further declines are not ruled out, given the deeply oversold conditions, it is unclear if AUD can reach the next support at 0.5870. Overall, only a breach of 0.6185 would suggest that the current downward pressure has eased."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold corrects from record high set at $3,500
Gold price pulls away from the record peak it set at $3,500 earlier in the day as buyers take a breather amid overbought conditions on short-term charts. Any meaningful corrective downfall, however, still seems elusive as US Dollar downtrend remains intact.
EUR/USD drops to daily lows near 1.1470, Dollar regains balance
EUR/USD slips back below the 1.1500 mark, trimming part of Monday’s rally as the Greenback picks up some upside momentum following recent multi-year losses. In the meantime, markets remain cautious in light of President Trump’s criticism of Fed Chair Jerome Powell and its potential implications for the US markets.
GBP/USD stays below 1.3400 as USD selloff pauses
GBP/USD fluctuates in a tight range below 1.3400 on Tuesday as the modest recovery seen in the US Dollar caps the pair's upside. Nevertheless, the pair's further downside appears limited as fears of a US economic slowdown and concerns about the Fed's independence remain a headwind for the Greenback.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.