The Australian dollar has witnessed a significant bullish move against the US dollar, with the AUD/USD currency pair breaking above the 0.6586 resistance level and extending its upside move from the 0.6361 low to as high as 0.6646.
This rally has propelled the AUD/USD into a well-defined rising price channel on the 4-hour chart. As long as the pair respects the support of this channel, the upside momentum could potentially continue, with the next target for the bulls being the 0.6720 area.
However, the AUD/USD is currently facing resistance at the upper boundary of the price channel on the 4-hour chart. This resistance level could potentially lead to a pullback and consolidation phase, allowing the pair to gather strength for the next potential leg higher within the broader uptrend that commenced from the 0.6361 low.
On the downside, the initial support for the AUD/USD is situated at the 0.6565 level. A breakdown below this support could potentially lead the pair back towards the bottom of the rising channel.
It’s important to note that as long as the AUD/USD maintains its position within the rising channel, the overall bias remains bullish, with the 0.6720 area acting as the next potential target for the bulls.
In summary, the AUD/USD has extended its rally, breaking above the 0.6586 resistance level and entering a well-defined rising price channel on the 4-hour chart. While the pair is currently facing resistance at the upper boundary of this channel, the upside momentum could potentially continue if the channel support holds firm, with the 0.6720 area serving as the next target for the bulls.
However, traders should remain vigilant and closely monitor the price action around the 0.6565 support level, as a breakdown below this level could potentially lead to a pullback towards the bottom of the rising channel.
Traders and investors are advised to stay agile and adapt their strategies based on the evolving price action in the AUD/USD currency pair.