The Australian Dollar edged higher by 110 pips or 1.88% in value against the US Dollar on Tuesday. The currency pair breached the 200– hour simple moving average during yesterday’s trading session.
All things being equal, the exchange rate will most likely continue to edge higher until it reaches the upper boundary of an ascending channel pattern at 0.6200.
If the channel pattern holds, the AUD/USD pair might make a brief retracement back to the 200– hour SMA at 0.5953 in the shorter term.
However, if the currency exchange rate breaks the ascending channel pattern, a surge towards the monthly R2 at 0.6665 could be expected in the nearest future.
