The 50-hour simple moving average has continued to guide the Australian Dollar lower against the US Dollar. The currency pair depreciated about 48 base points during the end of Monday’s session.
The exchange rate is trading near the upper boundary of a descending channel pattern at 0.7196 during the first half of Tuesday’s trading session and could be set for a breakout.
However, the currency exchange rate needs to surpass the 50-hour SMA at 0.7272 before any potential breakout occurs.
If the resistance line formed by the SMA hold, the price will target a swing low of 0.7165 today.
