- AUD/USD has broken an ascending channel and reached an initial target.
- There is a chance that the short-term trend is now bearish and the pair could decline further.
AUD/USD has broken the ascending channel and fallen to a preliminary target for the breakout, based on the 0.618 Fibonacci ratio of the channel height extrapolated from the breakout point downwards.
AUD/USD 4-hour chart
The breakout of the channel puts the short-term uptrend in doubt. If the price now breaks below the daily low of 0.6592, it would help confirm the downtrend and would likely result in a continuation towards the next downside target at the 0.6550-8 area, where the SMA sits. ) of 200.
A recovery above the May 23 high of 0.6653, however, would suggest that the uptrend is still intact and AUD/USD is likely to rise further.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
