The AUDUSD currency pair has failed to break below the rising price channel support visible on the 4-hour chart. Instead, the pair has been trading sideways in a range between 0.6557 and 0.6646 over the past several sessions.
Consolidation Within Uptrend
As long as the AUDUSD pair remains above the rising channel support, the current sideways price action can be viewed as a consolidation phase within the broader uptrend that originated from the 0.6361 low.A bullish breakout above the 0.6646 resistance could potentially trigger an upside continuation move, with the next key targets on the topside in the 0.6720 and 0.6790 areas.
Downside Risks on Channel Break
On the flip side, a breakdown below the rising channel support would likely signal that the upside move from 0.6361 has completed at the 0.6646 high.In this scenario, the first level of support to watch would be the 0.6557 area. If sellers can push the AUDUSD below 0.6557, the next key downside target would be the 0.6465 support zone.
Key Levels to Watch
For now, the key levels to watch in the AUDUSD are the rising channel support, the 0.6646 resistance, and the 0.6720 and 0.6790 upside targets.
As long as the pair remains within the confines of the rising price channel, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward 0.6720 and 0.6790 if the 0.6646 resistance is cleared.
However, a breakdown below channel support would be a significant technical event, likely opening the door for a deeper pullback toward the 0.6557 and 0.6465 support levels.
The AUDUSD finds itself in a consolidation phase after the recent rally from 0.6361. The direction of the next big move will likely be determined by the pair’s ability, or inability, to hold above the rising channel support in the sessions ahead.