AUDUSD is currently at a crucial juncture as it faces the support of a rising price channel on the 4-hour chart. This critical level will be closely watched by traders, as it could determine the future direction of the pair. Let’s analyze the current situation and explore potential scenarios.
As long as the rising price channel support holds, the upside move is expected to resume. In this scenario, traders could anticipate a break above the resistance at 0.6899, which may trigger further momentum towards the psychological level of 0.7000. Bullish sentiment could dominate if the support remains intact.
Key support is identified at 0.6787, and this level will be pivotal in determining the pair’s next move. A decisive breakdown below 0.6787 could indicate a potential completion of the recent upside move at 0.6899. Such a breakdown may attract additional selling pressure, leading to another decline.
Should AUDUSD break below 0.6787, traders may anticipate a retracement towards the previous low at 0.6594. A bearish sentiment could dominate in this case, and the pair might face further selling pressure.
Traders should closely monitor the price action around the rising price channel support to gauge market sentiment. A strong bounce from this level could signal a continuation of the uptrend. On the other hand, a confirmed breakdown below the support might lead to a shift in market sentiment and prompt traders to reassess their positions.
In conclusion, AUDUSD is currently at a crucial point, testing the support of a rising price channel. As long as the channel support holds, the upside move is expected to resume, with potential targets at 0.7000. However, a breakdown below the key support at 0.6787 might signal a potential reversal, with targets at 0.6594. Traders should exercise caution and stay informed about market developments to make well-informed trading decisions.