The Australian Dollar appreciated about 0.82% in value against the US Dollar on Friday. The currency pair tested the upper boundary of an ascending channel pattern at 0.7020 during Friday’s trading session.
However, after hitting the resistance level as mentioned above, the exchange rate began to decline. By the middle of Monday’s trading session, the pair has lost about 49 base points.
If the support level formed by the 200-hour SMA at 0.6957 holds, the currency exchange rate will make a pullback north.
Though, if the pair breaches the 200-hour SMA, a descending towards the bottom border of the channel pattern could be the next target for bearish traders.
