First of all, AUD/USD is still bearish as long as it is trapped within the downward channel. So, only a valid breakout from this chart pattern will signal a potential upward movement. AUD/USD is approaching the downtrend line, the downward channel's resistance, and the first resistance level R1.
The price has increased after the failure to stabilize below the 0.6676 static support, it has retested this downside obstacle. Now the pair seems determined to test the dynamic resistance. The major support area is seen at 0.6689 - 0.6676, we could search for long opportunities as long as AUD/USD stands above this area.
AUD/USD has managed to pass above the PP (Pivot Point) level signaling bullish pressure, MACD indicates a bullish divergence, but only a valid breakout above the downtrend line and above te R1 will signal a broader increase towards the R2 and R3 resistance levels.
The pair could drop on the short term again if it fails to touch the downtrend line, it could come back towards the Pivot Point to recapture bullish energy before it violates the channel's resistance. The potential upside movement will be invalidated after a drop below the 0.6689 - 0.6676 area.
- Trading Recommendations
We could have a great buying opportunity after a valid breakout with targets at R2 and R3 levels, Stop Loss could be placed somewhere below the PP level. You should be careful because another false breakout and a rejection will send the price down again.
I would like to see a consolidation right below the downtrend line, the price needs to accumulate energy and to attract more buyers before it gives birth to an important bullish movement.
