- August 24, 2020
- Posted by: Analysis Team
- Category: Forex News
- AUD/USD stages a modest bounce from a one-month-old ascending trend-channel.
- The set-up favours bullish traders and supports prospects for additional intraday gains.
- A sustained move back above the 0.7200 mark will reinforce the constructive outlook.
The AUD/USD pair attracted some dip-buying near the lower end of a one-month-old ascending channel and has now recovered around 30 pips from the Asian session lows. The mentioned support is pegged near the 0.7145 region, which should now act as a key pivotal point for short-term traders.
The emergence of some dip-buying on Monday, along with bullish oscillators on the daily chart favours bullish traders. Moreover, technical indicators on the 1-hourly chart have again started gaining some positive traction and support prospects for a further intraday appreciating move.
That said, bulls might still wait for a sustained move beyond the 0.7200 mark before placing aggressive bets. Above the mentioned level, the pair is likely to accelerate the momentum back towards YTD tops, around the 0.7275 area, before eventually aiming to reclaim the 0.7300 mark.
On the flip side, a sustained break below the trend-channel support might be seen as a fresh trigger for bearish traders. This, in turn, will set the stage for an extension of the corrective slide towards, even below the 0.7100 mark, towards retesting monthly lows, around the 0.7075 zone.
A subsequent slide is likely to find decent support, rather might be seen as a buying opportunity and remain limited near a previous strong resistance breakpoint near the 0.7050-40 region.
AUD/USD 4-HOURLY CHART