The drop was stopped by the 200—hour at 0.8006. The bulls had taken over the movement by the middle of Friday’s trading session.
Meanwhile, in regards to the future trading sessions, if the pair breaches the dominant channel it is likely to find resistance at the weekly of 0.8114 level.
The currency exchange rate has continued its bullish path, and the pair is moving in an ascending order inside the dominant channel.
In regards to the next trading session, the pair is likely to retrace to the south and find support at the weekly PP level at 0.8069. The combination of the 55—hour, 100—hour and 200—hour SMAs levels at 0.8059 and 0.8027 might stop the movement south and force a U-turn north.
The Australian Dollar continues to depreciate against the US Dollar. By the end of Monday's trading session, the pair formed a new low at 0.7836.
The currency exchange rate continues its bearish path, and it is moving smoothly in a descending channel. Technical indicators suggest another decline towards the weekly pivot point near the 0.7788 mark.
During the following trading sessions, the AUD/USD pair is likely to continue its decline until it finds support at the 0.7788 mark. Given that the descending channel narrows, a breakout either to south or north could be expected.
As it was expected, the Australian Dollar continued to rally against the US Dollar. By the end of the US trading session on Monday, the pair broke resistance of the weekly pivot point at the 0.7843 mark.
However, by the middle of Tuesday’s trading session, the Aussie had retreated south to re-test the weekly PP.
The currency exchange rate is likely to continue trading in the ascending channel during the following trading sessions.