AUD/USD extends its losses after a slight decline in the previous day, trading around 0.7140 during the Asian hours on Friday. The technical analysis of the daily chart indicates that the pair remains within an emerging descending wedge, suggesting two scenarios depending on how the price reacts to its boundaries.
A decisive break above the wedge's upper downward-sloping resistance line signals that buyers have taken control, hinting at a potential upward trend reversal. Because the pattern is still "emerging," if the price fails to break out of the upper boundary, it suggests the asset will continue to chop downward and consolidate within the narrowing bands until a breakout occurs.
The AUD/USD pair is holding just above the 50-day Exponential Moving Average (EMA) but is capped by the nine-day EMA. This positioning, alongside a 14-day Relative Strength Index (RSI) hovering near a neutral 48, hints at a consolidative, slightly capped tone after the recent pullback, with neither bulls nor bears in firm control.
The AUD/USD pair may retest the initial barrier at the nine-day EMA of 0.7164, followed by the upper boundary of the descending wedge around 0.7200. A break above the wedge support the pair to approach the 0.7277, the highest since June 2022, recorded on May 6.
On the downside, the immediate support lies at the 50-day EMA of 0.7115, followed by the lower wedge boundary around 0.7080. Further declines below the boundary would put downward pressure on the AUD/USD pair to navigate the region around the four-month low of 0.6833, which was recorded on March 30.
AUD/USD: Daily Chart
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Swiss Franc.
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