The pair consolidates above short-term support but faces resistance at the 50-day EMA, keeping near-term bias neutral with modest upside potential.
AUD/USD trades around 0.7000 in early European trading, retreating slightly after two consecutive days of gains. The pair remains within an ascending channel, suggesting a developing bullish bias, though it struggles to break above the 50-day Exponential Moving Average (EMA) at 0.7012.
Price action holds above the nine-day EMA at 0.6962, providing immediate support, while the 14-day Relative Strength Index (RSI) at 53.0 indicates mild bullish momentum. Resistance levels are seen at the 50-day EMA and the channel’s upper boundary near 0.7030, with a breakout potentially targeting 0.7277, the highest since June 2022.
Downside risks include a drop below the nine-day EMA, which could test the channel’s lower boundary at 0.6930. A sustained break lower may pressure the pair toward the March 30 low of 0.6833.