AUD/USD Price Forecast: Rebounds toward 0.7250 near four-year highs

AUD/USD pares its recent losses from the previous day, trading around 0.7220 during the Asian hours on Friday. The technical analysis of the daily chart indicates that the pair is moving upwards within the ascending channel, suggesting an ongoing bullish bias.

The AUD/USD pair holds a clear bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs), suggesting an ongoing topside phase after the recent advance.

The 14-day Relative Strength Index (RSI) around 61 supports constructive momentum but stays short of overbought territory, hinting that buying pressure is firm yet not overstretched.

The AUD/USD pair may rebound toward 0.7277, the highest since June 2022, recorded on May 6. A sustained break above this level would support the pair to target the upper boundary of the ascending channel around 0.7430.

On the downside, the initial support lies at the nine-day EMA of 0.7195, followed by the lower boundary of the ascending channel around 0.7170. Further declines would expose the 50-day EMA at 0.7083. A break below the medium-term average would cause the bearish emergence and put downward pressure on the AUD/USD pair to navigate the region around the three-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.)