AUD/USD seems too overbought to climb higher. The fresh low will suggest seeling as the rate could escape from the up channel's body. Technically, the pair is still trading with the bullish bias, but a USDX further bullish run should change the sentiment on AUD/USD.
The latest development showed a bearish pressure on the H4 chart, the rate flirts with the uptrend support. The US dollar could take full control and could lead the rate towards new lows.
AUD/USD stands within the up-channel but the failure to come back higher after the last false breakdown below the LML and below 0.7227 suggests strong sellers. We may have a great selling opportunity if the rate drops and closes below 0.7222 former low.
As an alternative scenario, AUD/USD should resume the upwards movement if jumps and stabilizes above 0.7309 today's high.
- AUD/USD Trading Tips
Sell from below the 0.7222 previous low or after a drop below the S1 (0.7197) level. S2 (0.7114) and the S3 (0.7006) level are seen as achievable downside targets.
Buy from above the Pivot Point (0.7305) if the rate registers a bullish closure above it. The median line (ML) could attract the rate again.
