Range Markets

During the previous trading session, the Australian Dollar was fluctuating between the 200-hour SMA and the monthly S1 in the 0.7592/0.7558 territory.

As previously expected, the strong resistance of the 200– and 55-hour SMAs and the weekly PP reversed the pair to the downside early on Thursday even despite strong opening hours.

The pair is guided by three channels and it is currently testing the bottom boundary of one pattern located at 0.7558. In case this formation is to prevail, traders could see further advance in price up to the aforementioned 0.7590 area—a move that is considered to be a more likely option for the given session.

Technical indicators, however, are in favour of a fall, setting the November low of 0.7527 as a possible downside target.

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