The AUD/USD currency pair lost ground after two consecutive days of gains, trading around 0.7240 during Asian hours on Tuesday [1]. Technical analysis indicates that the pair remains within an ascending channel, maintaining a bullish bias as it stays above both the nine-period and 50-period Exponential Moving Averages (EMAs) [1]. The 14-day Relative Strength Index (RSI) is around 60, suggesting firm but not overextended upside momentum, with buyers retaining near-term control as long as the price holds above these moving average supports [1].
On the upside, AUD/USD may attempt to retest 0.7277, the highest level since June 2022, which was recorded on May 6. A successful break above this resistance could see the pair targeting the upper boundary of the ascending channel near 0.7460 [1]. Conversely, on the downside, the pair may test the nine-day EMA at 0.7214, followed by the lower boundary of the ascending channel around 0.7200. A break below the 50-day EMA at 0.7096 would signal a bearish shift, potentially exposing the three-month low of 0.6833, last seen on March 30 [1].
In terms of daily performance, the Australian Dollar was the weakest against the US Dollar among major currencies, with a percentage change of -0.20% against USD [1]. The heat map data further confirms the AUD's relative underperformance compared to other major currencies on the day [1].
No forward-looking statements or analyst opinions beyond technical analysis were provided in the source article [1].
CONCLUSION
AUD/USD is showing signs of near-term weakness after recent gains, with technical support levels in focus. The pair's ability to hold above key EMAs will be crucial for maintaining its bullish structure, while a break lower could trigger further downside. Market sentiment is cautiously constructive but tempered by the Australian Dollar's underperformance against the US Dollar.