The Australian Dollar surged by 60 basis points or 0.85% against the US Dollar on Monday. The currency pair tested the upper line of a descending channel pattern at 0.7061 during yesterday’s trading session.
Currently, the AUD/USD exchange rate is trading near the upper border of the channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 200– hour simple moving average at 0.7084 could be expected within this session.
However, if the descending channel holds, bears are likely to pressure the currency exchange rate lower during the following trading hours.
