The Australian Dollar surged by 45 basis points or 0.61% against the US Dollar on Monday. The currency pair tested the upper boundary of a narrow ascending channel pattern during yesterday’s trading session.
A breakout occurred through the lower line of the narrow ascending channel pattern during the London session on Tuesday.
Given that a breakout had occurred, bearish traders could drive the exchange rate lower towards the weekly pivot point at 0.7275 today.
However, the 50– hour SMA at 0.7288 could provide support for the currency exchange rate within this session.
