The Australian Dollar depreciated about 70 base points against the US Dollar on Tuesday. The currency pair tested the monthly pivot point at 0.7200 during yesterday’s session.
Today’s session begins with a bullish sentiment. However, a strong resistance level formed by the combination of the 50– and 100-hour SMAs at 0.7239 stopped the bullish momentum during the first half to Wednesday’s trading session.
If this resistance level holds, the currency exchange rate could aim for the bottom border of an ascending channel at 0.7200 today.
On the other hand, if the rate passes the SMAs, the next target for the pair will be near the upper boundary of a descending trendline at 0.7256.
