AUD/USD following an ascending channel with support at 0.7090
|The Aussie dollar declined heavily from the 0.7250 resistance area against the US Dollar. The AUD/USD pair broke the key supports near 0.7210 and 0.7160 to move into a bearish zone.
The pair traded as low as 0.7061 and later started an upside correction. It traded above the 0.7080 level and the 50 hourly simple moving average. However, the 23.6% fib retracement level of the last decline from the 0.7245 high to 0.7061 acted as a strong resistance.
At the moment, the pair seems to be following an ascending channel with support at 0.7090 on the hourly chart. If sellers break the channel support, there could be further declines below 0.7060.
On the other hand, if there is an upside correction, the AUD/USD pair might extend the recovery towards the 0.7135 resistance in the near term.
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