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The AUD/USD pair has trimmed its gains from the previous session, trading near 0.7050 during early European hours on Thursday. Technical analysis of the daily chart shows the pair remains within an ascending channel pattern, suggesting a continued bullish bias despite the recent pullback. The breakdown below the nine-day EMA (Exponential Moving Average) has raised questions about the sustainability of the upward trend, but the price remains above key support levels within the channel. Traders are closely monitoring the 0.7050 level as a critical psychological and technical support area. For forex traders, the AUD/USD movement is significant as it reflects broader market sentiment toward risk assets. A sustained break below 0.7050 could trigger a retest of the 0.7000 level, while a rebound above the nine-day EMA might reignite bullish momentum. The pair's performance is also influenced by global risk-on/risk-off dynamics and central bank policies, particularly the Reserve Bank of Australia's (RBA) stance on interest rates. Looking ahead, investors should watch for potential breakout signals from the ascending channel. A decisive move above the upper trendline could target 0.7150-0.7200, while a breakdown below 0.7000 may open the door for further declines toward 0.6950. Key indicators to monitor include the RBA's policy decisions and global equity market movements, which often drive AUD flows.
