AUD/USD Price Analysis: Attempts another run towards 0.72 amid falling channel breakout
|- The aussie’s path of least resistance appears to the upside.
- The spot charts falling channel breakout on hourly sticks.
- Extension of the USD sell-off could risk a test of 0.72 in AUD/USD.
AUD/USD has receded from daily highs of 0.7146 but still trades with sizeable gains above 0.7100 amid broad US dollar weakness and US-China escalation over the consular closure.
From a short-term perspective, the spot has dived out of the falling channel on the hourly chart, calling for a test of the target pattern around 0.7235 levels in the coming days.
On its way to the said target, the spot will face initial resistance at 0.7183 (15-month tops), beyond which the 0.7200 round numbers could be tested.
On the flip side, the immediate cushion is seen at 0.7116, the bullish 100-hourly Simple Moving Average (HMA), a break below which will put the next key support around 0.7110 at risk. That zone is the confluence of the 21, 50-HMAs and falling trendline resistance-turned-support.
Should the bulls fail to defend the above-mentioned support, the near-term bullish bias could weakness subsequently. The hourly RSI trades flat but in the bullish territory, backing the case for the further upside.
AUD/USD hourly chart
AUD/USD additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.