AUD/USD has been cruising higher with its rising lows and highs inside an ascending channel and looks ready for a pullback.
Here are the potential support zones that could attract more buyers.
AUD/USD 4-hour Forex Chart by TradingView
Improving global trade sentiment has enabled this Aussie pair to trend higher inside a rising channel since May while the RBA’s surprise decision to hold in July gave an extra boost.
AUD/USD is hitting a ceiling at the top of its channel near R1 (.6630) while traders brace for the upcoming Australian quarterly CPI report, putting the pair in correction mode.
Can it find support at any of these Fib levels soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The pair is testing the 38.2% retracement level in line with the pivot point (.6560) at the moment but could still be in for a deeper pullback to the 50% Fib closer to the mid-channel area of interest and the .6550 minor psychological support.
Support could also be found at the 61.8% level then S1 (.6500) that coincides with a major psychological mark, so look out for reversal candlesticks that could suggest the uptrend is ready to resume. If this happens, bulls could set sights back on upside targets at the channel top or higher.
On the other hand, long red candles closing below the channel bottom could signal that a reversal may be in order, possibly dragging AUD/USD further south to S2 (.6440) then S3 (.6370).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
