On Monday, the Australian Dollar surged by 44 pips or 0.61% against the US Dollar. A breakout occurred through the upper boundary of a descending channel pattern during Monday’s trading session.
Given that a breakout has occurred, bullish traders could continue to pressure the exchange rate higher during the following trading session. The potential target for bulls would be near the 0.7320 area.
However, if the currency exchange rate breaks the 50– hours SMA support level at 0.7260, a decline towards the 0.7220 area could be expected within this session.
