AUD/USD remains under pressure, trading at 0.6880 as it struggles to break out of a descending channel, with the nine-month low of 0.6833 serving as the next critical support level.
The pair slipped below 0.6900 to around 0.6880 on Friday, a second straight day of losses, and trades within a descending channel below both the nine-day EMA (0.6970) and the 50-day EMA (0.7018), keeping the bearish near-term tone intact. RSI near 35 shows persistent downside pressure without oversold capitulation, and a Fed-favourable sentiment backdrop encourages fading bounces. Key test is the nine-month low of 0.6833 from March 30; a break targets the channel boundary near 0.6660.
The first support is the nine-month low of 0.6833 from March 30. If that breaks, the next target is the lower boundary of the descending channel around 0.6660.
A break above the descending channel, which requires clearing the nine-day EMA at 0.6970, the 50-day EMA at 0.7018 and the channel top around 0.7030, would open the way toward 0.7277, the highest level since April 2022.
The AUD/USD pair continues its downward trajectory, marking a second consecutive day of losses to trade near 0.6880. Technical indicators, including the pair's position within a descending channel and its failure to clear the nine-day and 50-day EMAs, reinforce a strong bearish bias. With the RSI at 35, the market shows persistent downside pressure without reaching oversold capitulation levels.
The first support is the nine-month low of 0.6833 from March 30. If that breaks, the next target is the lower boundary of the descending channel around 0.6660.
A break above the descending channel, which requires clearing the nine-day EMA at 0.6970, the 50-day EMA at 0.7018 and the channel top around 0.7030, would open the way toward 0.7277.