The Australian Dollar appreciated about 50 base points against the US Dollar on Friday. The currency pair tested the 50-hour simple moving average at 0.7042 during Friday’s trading session.
A breakout occurred through the upper boundary of a descending channel pattern during the first half of Monday’s trading session.
Given that a breakout had occurred, it is likely that the currency exchange rate could aim at a resistance level formed by the 200-hour simple moving average at 0.7078 within this session.
However, technical indicators demonstrate that a decline could be expected during the following trading session.
