The AUD/USD pair is currently moving within a rising price channel on the 4-hour chart, indicating that the uptrend from 0.6349 remains intact. The recent pullback from 0.6642 appears to be a consolidation phase for this upward movement.
Current Market Dynamics
As long as the support within the channel holds, we can expect the bullish trend to continue. The next target for the pair is around 0.6700, followed by the 0.6790 area.
Key Levels to Monitor
- Support Levels:
- The key support level is at 0.6564.
- If the price breaks below this level, it may suggest that the upward movement from 0.6349 has completed at 0.6642.
- In this case, the next support level to watch would be around 0.6480.
- Resistance Levels:
- The immediate resistance is at 0.6642.
- A breakout above this level could confirm the continuation of the uptrend towards the targets mentioned above.
Market Outlook
The current consolidation phase indicates that the market is taking a breather before potentially continuing its upward trajectory. If the support at 0.6564 holds, traders can anticipate further gains. However, a breakdown below this level could signal a shift in momentum and lead to a move towards lower support levels.
Conclusion
The AUD/USD pair is positioned within a rising channel, suggesting a bullish outlook as long as key support levels remain intact. Traders should keep a close eye on the 0.6564 support level and the 0.6642 resistance level for potential trading opportunities. A breakout above the resistance could lead to further gains, while a drop below support may indicate a reversal.
As always, practice proper risk management and stay updated on economic indicators that could influence the AUD/USD pair in the coming days.