AUD/USD Price Analysis: Aussie trapped in an ascending triangle
- AUD/USD's immediate bias is neutral with the pair stuck in a triangle pattern.
- A breakout would imply a resumption of the rally from November lows.
AUD/USD is currently trading above 0.7310, representing a 0.16% gain on the day.
While the pair is flashing green, it is yet to exit a two-week ascending triangle, as seen on the 4-hour chart. As such, the immediate bias remains neutral.
A break above the upper end of the triangle, currently at 0.7340, would imply a continuation of the rally from the Nov. 2 low of 0.6991 and open the doors for 0.7413 (Sept. 1 high).
Alternatively, a triangle breakdown would imply a short-term bearish reversal and shift risk in favor of a drop to 0.6991.
A bullish breakout looks likely at press time, as the equity markets are cheering prospects of an early rollout of coronavirus vaccines in the US.
4-hour chart
Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
