Australian Dollar gains ground due to rising odds of an aggressive Fed rate cut
Technical Analysis: Australian Dollar tests the upper boundary of the descending channel around 0.6700
The AUD/USD pair trades near 0.6700 on Monday. Technical analysis of the daily chart indicates that the pair is testing the upper boundary of a descending channel. A successful breach would signal a weakening bearish bias. Additionally, the 14-day Relative Strength Index (RSI) remains above the 50 level, suggesting a shift in momentum from a bearish to a bullish trend.
In terms of upside, a breakout above the upper boundary of the descending channel, near the 0.6700 level, could trigger a bullish bias for the AUD/USD pair. This could potentially push the pair toward its seven-month high of 0.6798 and test the psychological level of 0.6800.
On the downside, the AUD/USD pair could find immediate support around the nine-day Exponential Moving Average (EMA) at the 0.6703 level. A break below this level could reinforce the bearish bias and lead the pair to navigate the region around the lower boundary of the descending channel around the throwback support zone near 0.6575.
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