AUD/USD 4H Chart: Channel Down

Source: Dukascopy Bank
© Dukascopy Bank SA
© Dukascopy Bank SA

AUD/USD spiked its resistance at $1.0500, bounced off slightly below the level, and has formed a Channel Down pattern. The formation has 61% quality along with 100% magnitude within 101 bars.

The Downward channel pattern has been formed after the price was capped at three-month resistance around $1.0856.  The stochastic indicator tumbled from its critical area to the middle of the channel, increasing the possibility of the pair's trend-change. If the price falls deeper, bears can face pair's support level around $1.0335.

The initial pattern resistance for AUD/USD is situated at $1.0529/41. If the price steps up, investors may focus their attention on a possible level breakout around $1.0545. The first target after a possible breakout could be around $1.0642, near the pattern's previous high.

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