AUD/USD is located within a sideways movement, range, in the short term after the breakout through the uptrend line, up channel's support. Technically, AUD/USD was somehow expected to decline after the price has escaped from the ascending channel, but the failure to drop below the 0.6829 level has invalidated a potential drop for now.
On the other hand, the 0.7020 level is seen as a strong static upside obstacle, a jump above it, another peak high will validate a further increase. A failure to climb and stabilize above the 0.7020 could signal that the pair could slip lower in the short term.
- AUD/USD Trading Tips
The fact that AUD/USD has failed to test and retest the uptrend line signals that the pair could still decrease again in the upcoming period, but only a drop below the 0.6829 will really confirm a significant decline. If you want to see AUD/USD, maybe you should wait for a valid breakdown, drop, below the 0.6829 critical support.
Still, a jump above the 0.7020, a valid upside breakout from the extended sideways movement between the 0.6829 and the 0.7020 will bring a buying opportunity, this scenario will signal that AUD/USD will resume its upside movement.
