During Wednesday’s trading session, the Australian Dollar depreciated about 50 base points against the US Dollar. The decline was stopped by a support level formed by the combination of the 50– and 100-hour SMAs at 0.7093.
Thursday’s session began with a bullish sentiment. Currently, the exchange rate is testing the 200-hour simple moving average at 0.7133.
If the currency pair passes the 200-hour SMA, the next target for bulls will be at the upper boundary of a descending channel pattern at 0.7169.
However, if the SMA as mentioned above hold, a decline towards a swing low of 0.7060 could be expected.
