The AUD/USD currency pair is currently facing a crucial test of the support provided by the rising price channel on the 4-hour chart. This channel has been a significant guiding force for the broader uptrend that commenced from the 0.6361 level.
As long as the price respects the support of this rising channel, the recent pullback from the 0.6713 high could be viewed as a consolidation phase within the broader uptrend. In this scenario, another rally towards the 0.6800 level remains a distinct possibility after the current consolidation phase concludes.
On the upside, the immediate resistance for the AUD/USD is situated at the 0.6680 level. A decisive break above this level could potentially trigger another leg higher, potentially leading the pair to retest the previous high of 0.6713.
If the AUD/USD manages to surpass the 0.6713 resistance, the focus would shift towards the 0.6800 level, which could act as a significant target for the bulls.
However, traders should also remain vigilant for potential bearish signals. A breakdown below the rising channel support could potentially lead the AUD/USD towards the next support level at 0.6610.
If the pair breaches the 0.6610 support, it could potentially indicate that the upside move from the 0.6361 low has completed at the 0.6713 high. In such a scenario, the next target for the bears would be the 0.6550 area.
In summary, the AUD/USD is currently testing the support of the rising price channel on the 4-hour chart. As long as this support holds firm, the overall bias remains skewed towards the upside, with the potential for a move towards the 0.6800 level after the current consolidation phase.
However, traders should closely monitor the price action around the 0.6680 and 0.6713 resistance levels, as well as the rising channel support and the 0.6610 level, as these levels could provide valuable insights into the potential direction of the AUD/USD in the coming days.