AUD/USD 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The bias towards AUD/USD is strongly negative. For one, currency pair is currently forming a descending channel, and at the moment the price is trading right at the upper bound of the pattern. In addition, the rate has just broken through the 200-hour SMA, and the near-term technical indicators are mostly pointing south. Moreover, the Australian Dollar is heavily overbought—72% of open positions are long. Accordingly, AUD/USD is expected to bounce off of 0.7380 and head off to 73 cents, where it is awaited by the lower trend-line of the channel and the weekly S1. A reversal is likely to occur only circa 0.72, where the pair is to meet the lower bound of the nine-month bullish channel.
© Dukascopy Bank SA
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