The Australian Dollar fell by 95 pips or 1.22% against the US Dollar on Tuesday. A breakout through the lower boundary of an ascending channel occurred during yesterday’s trading session.
Given that a breakout has occurred, bearish traders are likely to continue to pressure the exchange rate lower during the following trading session. The potential target for bears will be near the 0.7650 area.
However, a support cluster formed by the 200– hour simple moving average and the weekly pivot point at 0.7692 could provide support for the currency exchange rate in the shorter term.
