The AUDUSD currency pair has been on a rollercoaster ride lately, and traders are closely monitoring its price action to decipher the next potential move. After rallying from 0.6361 to 0.6713, the pair has experienced a significant pullback, plunging as low as 0.6607.
Notably, this pullback has broken through the support of a rising price channel on the 4-hour chart, a technical pattern that had previously guided the uptrend. This development suggests that the upside move from 0.6361 may have already exhausted itself at 0.6713.
If this bearish signal holds true, further declines in the AUDUSD pair could be on the horizon. Traders will be keeping a close eye on the 0.6560 area as the next potential target for the bears. Should the selling pressure persist, the 0.6460 area could come into focus as a subsequent support level.
However, it’s essential to remember that the forex market is highly dynamic, and reversals can occur swiftly. In this case, the initial resistance level to watch is 0.6660. A decisive breakout above this level could trigger another rally, potentially testing the previous high of 0.6713.
If the pair manages to surpass the 0.6713 level convincingly, it could signal a resumption of the uptrend that originated from 0.6361. In such a scenario, traders would shift their sights to the 0.6790 area as the next potential target for the bulls.
As always, traders must remain vigilant and adapt to the ever-changing market conditions. By closely monitoring these key levels and price action around the broken rising price channel, traders can position themselves accordingly, whether to capitalize on potential opportunities or to mitigate risks.