Australian Dollar Tests Key Channel Support Against US Dollar

The AUDUSD currency pair is once again facing the support of the rising price channel visible on the 4-hour chart. This area will likely determine the pair’s near-term directional bias.

Consolidation Within Uptrend

As long as the AUDUSD remains above the rising channel support, the current pullback from the 0.6713 high can be viewed as a consolidation phase within the broader uptrend that originated from the 0.6361 low.In this scenario, another rally toward the 0.6800 handle could potentially unfold for the pair after the current consolidation period.

Key Resistance Levels

In the near-term, the first level of resistance to watch on the topside is the 0.6680 area. A breakout above this level could potentially trigger an upside move to retest the 0.6713 high.If buyers can push the AUDUSD above 0.6713, the next key target would be the 0.6800 resistance zone.

Downside Risks on Channel Break

On the flip side, a breakdown below the rising channel support would likely signal that the upside move from 0.6361 has completed at the 0.6713 high.In this scenario, the first level of support to watch would be the 0.6610 area. A move below 0.6610 would open the door for a potential decline toward the 0.6550 support region.

Key Levels to Watch

For now, the key levels to watch in the AUDUSD are the rising channel support, the 0.6680 and 0.6713 resistance levels, along with the 0.6610 and 0.6550 support areas.

As long as the pair remains within the confines of the rising price channel, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward the 0.6800 target after the current consolidation.

However, a breakdown below channel support would be a significant technical event, likely opening the door for a deeper pullback toward the 0.6550 support zone.

The AUDUSD finds itself at an important technical juncture, with the rising channel support being the key level to watch. The direction of the next big move will likely be determined by the pair’s ability, or inability, to hold above this trendline in the sessions ahead.