AUD/USD – Breaking the downtrend?

Can it maintain momentum?

The Aussie dollar has been on a decent run in recent weeks against the greenback but it’s suddenly struggling around an important area of resistance.

The pair has been in a downward trend for a little over a year and the top of the descending channel falls between the 50 and 61.8 fib levels and around 0.73, near the same level it failed at last week.

A move above here would look like quite a bullish breakout but there may still be one more big obstacle in the way. The 200/233-day SMA band falls a little above here around the 61.8 fib and January highs.

This could be a big test for the pair and may even trigger some profit-taking on approach, which the momentum indicators could highlight.

A move above here could propel the pair higher and signal the start of a much greater uptrend.

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