AUD/USD Analysis: declines after RBA statement
Our preference: short positions below 0.6720 with targets at 0.6685 & 0.6670 in extension.Alternative scenario: above 0.6720 look for further upside with 0.6730 & 0.6745 as targets.
The Australian Dollar has depreciated about 0.99% in value against the US Dollar since Monday’s trading session. The currency pair tested the lower boundary of a descending channel pattern at 0.6701 during the Asian session on Tuesday.
The exchange rate is currently trading near the bottom border of the descending channel pattern.If the lower band of the channel pattern holds, a brief retracement towards the weekly S1 at 0.6732 could be expected today.
However, if the currency exchange rate breaks the descending channel pattern, bearish traders would continue their dominance in the market today.