October 14, 2022 01:36 AM ET
By: AnalysisWatch
AUD/USD hovers around the intraday high of 0.6343 and continues the recovery from the 30-month low of the previous day. Thus, the Australian pair remains firmer for the second consecutive day, moving within a bearish chart pattern, namely the descending trend channel established on September 07.
The recovery of the quote from 0.6170 seems to be a corrective bounce from the aforementioned channel support, indicating further recovery. Also, the gradual rise of the RSI from the near oversold area and the upcoming upward crossing of the MACD favor the upward momentum of the pair.
As a result, the Aussie pair are on track to break above the 10-DMA hurdle at 0.6375. However, the upper line of the downtrend channel, at 0.6410, could challenge AUD/USD buyers.
If prices manage to overcome the hurdle of 0.6410, a rise towards the monthly high of 0.6547 cannot be ruled out.
Alternatively, pullback moves could target the 0.6300 threshold before targeting the March 2020 high at 0.6215.
Following that, the lower line of the channel, which was around 0.6150 at press time, will be crucial for AUD/USD bears.
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