- AUD / USD finds support once again just above 0.7700.
- AUD / USD remains within a horizontal channel on the 1 hour chart.
- The RSI is heading higher and the pair is looking to test the resistance of the channel at 0.7760.
The AUD / USD pair is making a solid recovery from just above the 0.7700 level, as the US dollar resumes its decline after a brief rebound during the Asian session on Monday.
A further rise is likely as renewed weakness in US Treasury yields is likely to exacerbate the weakness of the US dollar.
From a short-term technical perspective, the AUD / USD is moving within a horizontal channel on the 1-hour chart since Thursday. The rally has resistance near 0.7760 while the bulls continue to find support around 0.7705.
With the RSI heading higher near the 57 level, the AUD bulls could probably challenge the aforementioned channel resistance.
Acceptance above this level could set the stage for a move to the round 0.7800 level.
At time of writing, the pair has regained critical resistance from the upward sloping 50 hourly moving average at 0.7740.
If sellers regain control below that level, AUD / USD could pull back to retest the 0.7705 support area.
A firm break below this last level could produce a breakout of the channel, exposing the support of the 200 hourly SMA at 0.7665.
AUD / USDD 1 hour chart
AUD / USD additional levels
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