The Australian Dollar appreciated about 50 base points against the US Dollar on Tuesday. The currency pair tested the upper boundary of a descending channel pattern at 0.6877 during the morning hours of Wednesday’s trading session.
Currently, the 100-hour simple moving average provides resistance for the exchange rate at 0.6879.
If the resistance level as mentioned earlier holds, a decline towards the monthly S1 at 0.6848 is likely to occur.
However, if the AUD/USD currency exchange rate breaks the descending channel pattern, the pair might end this week’s trading sessions on bullish momentum.
