A one-week descending channel pattern has guided the Australian Dollar lower against the US Dollar. The currency pair breached a support level formed by the weekly S1 at 0.7127 during the first part of Tuesday’s trading session.
Technical indicators flash strong buy signals on the daily time-frame chart. Therefore, a potential bullish reversal is likely to occur in the shorter term.
However, given that the currency exchange rate has been dominated by bears during the past week, most likely, the decline will continue during the following trading session. The AUD/USD currency pair might aim for the weekly S2 at 0.7097 today.
