The AUDUSD currency pair recently touched the resistance level at 0.6709 and subsequently pulled back from 0.6717. This price action suggests that a period of consolidation is currently underway, following the uptrend from 0.6457.
Traders should closely monitor the support level provided by the rising price channel. As long as this support holds, there is a likelihood that the upside move could resume, potentially pushing the pair towards the resistance level at 0.6817. The rising price channel serves as a guide to gauge the strength of the uptrend, and a bounce from the channel support would reinforce the bullish sentiment.
Conversely, a breakdown below the channel support would indicate that the uptrend from 0.6457 has potentially completed. In such a scenario, a deeper decline towards the support level at 0.6559 could be expected. Traders should closely monitor the price action and be prepared for the possibility of a trend reversal.
In summary, AUDUSD is currently experiencing a consolidation phase after testing the resistance level at 0.6709. Traders should watch for the support provided by the rising price channel, as a bounce from this level could indicate a resumption of the uptrend towards 0.6817. However, a breakdown below the channel support would suggest a potential trend reversal, with the pair potentially targeting the support level at 0.6559. Stay informed, apply prudent risk management practices, and adapt trading strategies accordingly to navigate the AUDUSD market effectively.
