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
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
