AUD/USD Sees Bullish Bias Amid Ascending Channel Pattern
The Australian dollar (AUD) has continued its upward momentum, trading around 0.7050 during the Asian hours on Wednesday.
According to technical analysis, the AUD/USD pair is currently within an ascending channel pattern, suggesting a prevailing bullish bias.
The 14-day Relative Strength Index (RSI) hovers near 59, indicating firm but not extreme bullish momentum. The FXS Fed Sentiment Index at 145.80 suggests that policy-related headlines could continue to inject volatility into the trend.
Strategists at UOB Group note that the Aussie has staged a stronger-than-expected comeback after its recent slide and expect upward momentum to build, with minor support at 0.7030.
The AUD/USD pair may rise toward the upper boundary of the ascending channel around 0.7120, but any advance is unlikely to break above the major resistance at 0.7075, according to UOB.