Downside risks prevailed in the market on Friday, thus allowing the Australian Dollar to declined about 40 base points against the US Dollar. The currency pair breached the 50-, 100– and 200-hour SMAs during Friday’s trading session.
A traditional monthly pivot point at 0.7090 provided support for the exchange rate during the morning hours of Monday’s session.
If this support level holds, bullish traders will aim for a resistance line at 0.7143 within this session.
However, if the currency exchange rate passes the support level as mentioned earlier, the next target for the pair will be near the weekly S1 at 0.7064.