AUD/USD retraces its recent losses from the previous session, trading around 0.6860 during the European hours on Thursday. Technical analysis of the daily chart shows the pair attempting to break above the lower boundary of an ascending channel pattern. A successful return to the channel would strengthen the bullish outlook.
The 14-day Relative Strength Index (RSI) remains above the 50 level, suggesting that bullish sentiment is still intact. A further move toward the 70 level would strengthen the upside trend for the pair.
On the upside, the AUD/USD pair is testing the lower boundary of the ascending channel at the 0.6860 level. A successful rebound into the channel would provide support for the pair to move toward the upper boundary, located around the 0.6960 level.
In terms of support, the AUD/USD pair may find immediate support at the nine-day Exponential Moving Average (EMA) around the 0.6815 level. The next key support level is the psychological barrier at 0.6700. A drop below this level could drive the pair further down toward its six-week low of 0.6622.