AUDUSD ANALYSIS

2 days ago

The Australian Dollar rises as the Financial Times reported that the PBoC is signaling potential rate cuts this year. The AUD recovered from two-year lows as stronger commodity prices provided support, particularly Oil and Gold. The US Dollar Index corrects downwards from a new multi-year high of 109.56 reached on Thursday.

AUD/USD trades near 0.6210 on Thursday, maintaining a bearish outlook as it remains within a descending channel on the daily chart. However, the 14-day Relative Strength Index (RSI) has bounced back above the 30 level, suggesting the potential for a near-term upward correction despite the prevailing downtrend.

The AUD/USD pair may find immediate resistance at the nine-day Exponential Moving Average (EMA) at 0.6220, with the next obstacle at the 14-day EMA at 0.6244. A key resistance level is the descending channel’s upper boundary, around the psychological mark of 0.6300.