AUD/USD Price Forecast: Tests descending channel bottom around 0.6950

AUD/USD continues its losing streak for the sixth consecutive day, trading around 0.6960 during the Asian hours on Tuesday. The technical analysis of the daily chart shows the pair remaining within the descending channel pattern, suggesting a prevailing bearish bias.

However, the AUD/USD pair is keeping a bearish near-term bias as spot holds below both the nine-day and 50-day Exponential Moving Averages (EMAs). The configuration of short- and medium-term EMAs above spot suggests rallies remain corrective, while the 14-day Relative Strength Index (RSI) near 32 hints at emerging oversold conditions that could slow, but not yet reverse, the downside.

The AUD/USD pair tests the lower boundary of the descending channel around 0.6950. A sustained break below the channel would put downward pressure on the pair to navigate the region around the five-month low of the 0.6833 region, recorded on March 30.

On the upside, the immediate barrier lies at the nine-day EMA of 0.7018. Further advance would support the AUD/USD pair to test the 50-day EMA of 0.7086, followed by the upper boundary of the descending channel around 0.7130. Further advances would expose the 0.7277, the highest level seen since June 2022, recorded on May 6.

(The technical analysis of this story was written with the help of an AI tool.)