The Australian Dollar has edgd higher by 134 pips or 1.75% against the US Dollar since Tuesday’s trading sessions. The currency pair tested the upper boundary of an ascending channel pattern at 0.7795 during the London open on Wednesday.
Given that the exchange rate is currently trading near the upper line of the channel pattern, a breakout is likely to occur during the following trading session.
If the breakout occurs, a surge towards the weekly R2 at 0.7848 could be expected today.
However, if the ascending channel pattern holds, the currency exchange rate would make a brief retracement towards the 0.7750 area within this session.
