AUD/USD Price Analysis: Marches towards 0.6450 inside bearish channel
- AUD/USD extends bounce off 2.5-year low, grinds higher around daily top of late.
- Rebound from the key support joins price-positive oscillators to keep buyers hopeful.
- Sellers remain hopes unless the quote stays inside five-week-old bearish channel.
AUD/USD dribbles around the intraday high of 0.6343 while extending the previous day’s rebound from a 30-month low. In doing so, the Aussie pair remains firmer for the second consecutive day while staying inside a bearish chart pattern, namely the descending trend channel established from September 07.
The quote’s rebound from 0.6170 appears a corrective bounce from the aforementioned channel’s support, suggesting further recovery. Also favoring the pair’s upside momentum is the RSI’s gradual uplift from the nearly oversold region and the impending bull cross on the MACD.
With this, the Aussie pair is all-set to challenge the 10-DMA hurdle, around 0.6375. However, the bearish channel’s upper line, close to 0.6410 at the latest, could challenge the AUD/USD buyers afterward.
In a case where the prices successfully cross the 0.6410 hurdle, the odds of witnessing a run-up toward the monthly high of 0.6547 can’t be ruled out.
Alternatively, pullback moves could aim for the 0.6300 threshold before highlighting the March 2020 high near 0.6215.
Following that, the lower line of the channel, around 0.6150 by the press time, will be crucial for the AUD/USD bears to watch.
AUD/USD: Daily chart
Trend: Limited upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
