What Happened
AUD/USD slipped during Asian trading on Tuesday, losing ground after back-to-back gains to settle around 0.7240. The pullback was modest but enough to put short-term support levels back in focus for traders.
Key Levels
- Support 1: 0.7200 โ the nine-day EMA (Exponential Moving Average, a short-term trend tracker) sits here and is the first major line in the sand.
- Support 2: 0.7150 โ the lower boundary of the ascending channel provides a deeper floor if 0.7200 gives way.
- Resistance 1: 0.7280 โ the immediate ceiling from Tuesday’s Asian session high.
- Resistance 2: 0.7320 โ the upper boundary of the ascending channel, a level bulls need to clear to extend the rally.
Technical Picture
The daily chart shows AUD/USD trading inside a clear ascending channel โ a pattern where price makes higher highs and higher lows, indicating buyers remain in control of the broader trend. The pair is above its key moving averages, which continue to slope upward. This pullback looks more like a pause than a reversal at this stage.
What Traders Are Watching
The critical line is 0.7200. A hold above this level keeps the bullish channel structure valid and could attract dip buyers looking for a bounce toward 0.7280 and then 0.7320. However, a daily close below 0.7200 would be a warning sign, potentially opening the door to a deeper test of 0.7150.
Bias
Bullish โ as long as price holds above the 0.7200 nine-day EMA support. The ascending channel structure remains intact, and the broader trend continues to favour buyers unless that floor is broken.
Note: AUD/USD is not an ASX-listed product, but moves in the Australian dollar directly impact ASX-listed resource stocks and import-sensitive companies. Always apply your own risk management.