AUD/USD Climbing: Is the Aussie Dollar Set for More Gains?

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ForexInflux
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The Big Picture AUD/USD is currently moving within a rising price channel on the 4-hour chart. This suggests that the uptrend that began at 0.6349 is still intact. The recent pullback from the 0.6642 high looks like a temporary pause rather than a reversal.

What This Means for Bulls As long as the pair stays within this rising channel, we could see further gains. Here are the key levels to watch:

  1. Next Target: 0.6700 This is the immediate goal for bulls if the uptrend continues.
  2. Further Upside: 0.6790 If momentum remains strong, this could be the next major target.

Key Support to Watch The critical level to keep an eye on is 0.6564. Here’s why it’s important:

  1. Channel Support: This level aligns with the lower boundary of the rising channel.
  2. Trend Confirmation: As long as the price stays above this level, the uptrend remains valid.
  3. Potential Reversal Point: A break below 0.6564 could signal that the upward move from 0.6349 to 0.6642 has completed.

What If Support Breaks? If AUD/USD does fall below 0.6564, the next significant support to watch would be around 0.6480.

Trading Implications

  1. For Bulls:
    • Look for opportunities to enter long positions on pullbacks within the channel.
    • Consider setting targets around 0.6700 and 0.6790.
    • Use the channel support (around 0.6564) as a guide for stop-loss placement.
  2. For Bears:
    • The current trend suggests caution is needed for short positions.
    • Watch for any signs of weakness below the 0.6564 support level before considering short entries.

Key Takeaways

  1. AUD/USD is in an uptrend, moving within a rising price channel.
  2. The immediate targets for bulls are 0.6700 and potentially 0.6790.
  3. 0.6564 is a crucial support level to watch.
  4. A break below 0.6564 could signal a trend reversal, with 0.6480 as the next support.

Remember, forex markets can change quickly. Always use proper risk management techniques and stay informed about economic events that could impact currency movements, especially those affecting both the Australian and US economies.

We’ll continue to monitor AUD/USD and provide updates as the situation evolves. Happy trading!