The Australian Dollar edged higher by 1.22% against the New Zealand Dollar last week. The currency pair tested the upper boundary of an ascending channel pattern at 1.0858 on August 5.
Currently, the AUD/USD exchange rate is testing the monthly resistance level at 1.0858.
If the monthly R1 holds, a decline towards the bottom line of the ascending channel pattern could be expected within this week’s sessions.
However, if the currency exchange rate breaks the monthly resistance level, bullish traders are likely to pressure the price higher during the following trading sessions.