The upward trajectory of the AUD/USD pair remains active, with a continuous focus on the ascending trend. A decisive breach of the channel’s upper boundary, now at 0.6667, would suggest the reversal of the downtrend that started from a peak of 0.7160, bottoming at 0.6273. Such a breach would pave the way for a push towards the 0.6898 resistance level, serving as a crucial confirmation point. Conversely, a dip below the 0.6599 minor support level would temporarily neutralize the upward bias. However, the bullish outlook remains intact as long as the pair sustains above the 0.6525 level, which has transformed from resistance to support.
The long-term downtrend from the 2021 high of 0.8006 remains unconfirmed as complete. The movements from the 2022 bottom of 0.6173 could merely represent a mid-term correction, with the current upswing from 0.6273 possibly being the final phase of this pattern. Until significant developments occur, the pair is expected to oscillate within the boundaries set by the 2022 low of 0.6173 and the 2023 high of 0.7160, indicating a phase of range-bound trading.
Analysis Summary
In summary, the analysis suggests a potential reversal of the downtrend, conditional on breaking key resistance levels, while also considering the possibility of a mid-term corrective pattern in a broader context.
Key Points
- A decisive break of 0.6667 resistance could signal a trend reversal.
- Sustained trading above 0.6525 support indicates a continued bullish outlook.
- Long-term analysis shows potential for range-bound trading between 0.6173 and 0.7160.
