AUD/USD is pressuring a strong and critical resistance line after the failure to confirm a short term reversal. It is trading at 0.6924 level and it maintains a bullish outlook even if AUD/USD has escaped from a down channel.
The next few hours could be crucial for the USD, which could resume its depreciation if the US data disappoints today. The dollar has decreased again versus its major rivals as the USDX has failed to stabilize above the 97.36 resistance.
AUD/USD has broken below the uptrend line, channel's support, but the reversal wasn't confirmed as the price has failed to make another lower low, to drop below the 0.6776 level. Maybe you should wait for a fresh signal before going long or short, another lower low, a valid breakdown below the 0.6776, and below the R1 (0.6774) will bring a short opportunity, while another higher high, a valid breakout above the 0.7031 - 0.7063 area will give us a chance to go long.
The upper median line (UML) is seen as strong dynamic resistance, a valid breakout above this line could signal a further increase. Still, a rejection, a false breakout with great separation above the UML, or a bearish engulfing, will announce a potential bearish momentum.
- AUD/USD TRADING TIPS
Sell if AUD/USD drops and closes below the 0.6776 former low and below the inside sliding line (SL) of the orange descending pitchfork. The 38.2% retracement level, 0.6468 level is seen as a potential downside target. Technically, the breakout from the ascending channel has signaled a potential reversal, this will be validated only by another lower low.
AUD/USD will resume its uptrend if the price closes and stabilizes above the upper median line (UML), a valid breakout above the 0.7031 will really confirm further gains in the upcoming period.
