The Australian dollar may fall to the weakest level in six weeks, according to Bank of America Corp., citing trading patterns.
The so-called Aussie is “confirming a top and turn in trend for the 0.9850 area, potentially the 0.9663/0.9613 zone” against the U.S. dollar, MacNeil Curry, the bank’s New York-based head of foreign-exchange and interest-rates technical strategy, wrote in a report yesterday.
Australia’s dollar may extend losses after it slid below trendline support of $1.0192, according to Curry. Support is an area on a price graph where orders to buy may be clustered. He recommended in the note investors sell the Aussie at $1.0113.
The Australian dollar fell 0.1 percent $1.0129 at 10:49 a.m. in Sydney from the close in New York yesterday, when it touched $1.0101, the weakest level since June 29. It has gained 2 percent over the past month. The last time the Aussie was at 96.13 U.S. cents was on June 1.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.