The AUDUSD has pared gains to trade at 0.6650, as investors remain concerned over the US debt ceiling talks. The US dollar continues under pressure from default worries, while the Australian dollar ignores the PBOC’s status quo.
The AUDUSD price takes up bids to test the bearish channel that has been in place for a week.
Early on Monday in Asia, the AUDUSD resumes its intraday high above 0.6665. By doing this, the purchasers of the Australian pair put a week-old falling trend channel to the test.
Despite this, positive MACD indications and the RSI (14) line’s rising slope maintain the Aussie purchasers’ optimism.
The AUDUSD pair hopes to do this by breaking through the top line of the aforementioned bearish channel, which is currently at 0.6670 as of the time of this writing.
Even yet, it seems like the 100-SMA and 200-SMA convergence, which occurs around 0.6685-90, will be difficult for the AUDUSD bulls to overcome before seizing the initiative.
If the AUDUSD continue to dominate above 0.6690, they will require confirmation from the 0.6700 round number before aiming for the monthly high of about 0.6820.
On the other hand, pullback maneuvers could aim for the round number of 0.6600 before checking the lower line of the aforementioned channel, no later than 0.6590.
The annual low recorded in March near 0.6565 and the low recorded in April around 0.6570 will then be highlighted.
Overall, the AUDUSD is probably going to rebound, but the path up north is lengthy and difficult.
Technical Levels
| Daily SMA20 | 0.6677 |
| Daily SMA50 | 0.6687 |
| Daily SMA100 | 0.6786 |
| Daily SMA200 | 0.6714 |
