• AUD/USD may rebound toward the 50-day EMA of 0.7012.
• The 14-day Relative Strength Index is at 53.0, hinting at modest bullish momentum over a decisive trend.
• The pair could find the initial support at the nine-day EMA of 0.6962.

AUD/USD edges lower after two days of gains, trading around 0.7000 during the early European hours on Thursday. The technical analysis of the daily chart shows that the pair is moving upwards within the ascending channel pattern, suggesting an emerging bullish bias.

The AUD/USD pair is caught between nearby Exponential Moving Averages (EMAs) as the pair consolidates after its recent recovery. Price holds above the nine-period EMA, which offers immediate dynamic support, but remains capped by the 50-period EMA just overhead, keeping the near-term bias broadly neutral with a slight constructive tone. The 14-day Relative Strength Index (RSI) at 53.0 sits just above the midline, hinting at modest bullish momentum rather than a decisive trend.

The AUD/USD may find the primary resistance at the 50-day EMA of 0.7012, followed by the upper boundary of the ascending channel around 0.7030. A sustained break above the channel would strengthen the bullish bias and lead the pair to explore the region around 0.7277, the highest since June 2022, recorded on May 6.

On the downside, the initial support lies at the nine-day EMA of 0.6962, followed by the lower boundary of the ascending channel around 0.6930. Further declines below the channel would cause the bearish emergence and put downward pressure on the AUD/USD pair to test a nearly six-month low of 0.6833, which was recorded on March 30.

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