AUD/USD Continues Decline

The AUD/USD pair is currently in a six-day downturn, trading around 0.6960 during Asian hours on Tuesday. A look at the daily chart highlights that it’s still moving within a descending channel pattern, indicating a prevailing bearish sentiment.

In the short term, the outlook remains pessimistic as the pair lingers below both the 9-day and 50-day exponential moving averages (EMAs). The positioning of the short- and intermediate-term EMAs above the current level suggests that any bullish movements might be temporary. Moreover, the 14-day Relative Strength Index (RSI) hovering near 32 hints at an emerging oversold condition, which could potentially slow the decline but might not yet lead to a reversal.

The pair is currently testing the lower boundary of this channel around 0.6950. If it breaks below this threshold, there could be increased downward pressure, pushing it towards the five-month low of 0.6833 recorded on March 30th.

Looking upwards, the immediate resistance lies at the 9-day EMA, which is at 0.7018. If the AUD/USD pair manages to gain traction, it would next confront the 50-day EMA at 0.7086, followed by the upper boundary of the channel near 0.7130. A further rise could lead it to 0.7277, the highest level since June 2022, reached on May 6th.