The Australian dollar is trading near the 0.7000 level against the US dollar Thursday morning in European markets after pulling back from its 50-day exponential moving average. The pair retreated following two consecutive sessions of gains but remains contained within an ascending channel pattern that signals underlying bullish momentum according to technical indicators.
AUD/USD traders are watching key support at the 0.7000 psychological level, which has become a critical floor for the currency pair’s recent advance. The pullback from the 50-day EMA suggests short-term resistance, though the broader ascending channel structure indicates buyers maintain control of the trend. The pattern formation points to potential upside continuation if the pair holds above current levels.
Market participants including forex traders and brokers should monitor whether AUD/USD can defend 0.7000 support, as a break below could trigger stop-loss selling and accelerate downside momentum.
FXnCO Insight
Watch for potential long opportunities if AUD/USD holds 0.7000 support with confirmation from the ascending channel pattern, while a decisive break below warrants defensive positioning.
Source: FXStreet