AUD/USD has experienced a deeper pullback after approaching projections and the upper limit of a multi-month ascending channel near 0.6950/0.6965, Société Generale’s FX analysts note.

Downtrend can extend towards April lows

“It has recently given up the 200-DMA (0.6630). Daily MACD is within negative territory denoting lack of upward momentum. The pair is gradually drifting towards next potential support of 0.6470 representing the trend line drawn since October 2023.”

“If the decline stalls near this level, an initial bounce is likely but reclaiming the MA at 0.6630 would be crucial for confirming a meaningful up move. Failure to hold 0.6470 could extend the downtrend towards April lows of 0.6360/0.6340.”