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AUD/USD edges higher but stays capped under key moving averages
The pair is attempting to stabilize near 0.6930, but technical signals point to a risk of a move toward 0.6833 if it fails to clear the nine-day EMA zone.
AUD/USD edged higher in Asian trading, holding around 0.6930 after ending the prior session down 0.5%, according to FXStreet. The daily chart technical view described the pair as still sitting within a descending channel, indicating a prevailing bearish near-term bias.
FXStreet said AUD/USD remains under both the nine-day and 50-day exponential moving averages, with the 14-day RSI near 40 suggesting only modest recovery momentum. While the pair is testing a nearby resistance area around the nine-day EMA at 0.6932, clustered moving averages are viewed as potential caps on any rebound.
On the downside, FXStreet flagged the potential for AUD/USD to fall toward a nearly six-month low of 0.6833 set on March 30. It also noted that further weakness could expose the lower boundary of the descending channel around 0.6770.
On the upside, FXStreet pointed to the nine-day EMA area near 0.6932 and the descending channel upper boundary around 0.6960 as key levels to watch. A break above the channel would be needed to shift the outlook toward a retest of the 50-day EMA near 0.7011.