AUD/USD 4H Chart: Channel Up

Source: Dukascopy Bank SA
© Dukascopy Bank SA
After AUD/USD stabilised near 0.7150 following the April-May sell-off, the pair managed to form an ascending channel of decent quality. And while the weekly outlook on the Aussie is bullish, as the currency has just bounced off of the lower bound of the pattern and the SWFX market is overcrowded with bears (72% of positions are short), the upside is seen limited. Also, most of the four-hour and daily technical indicators are giving ‘buy' signals, but the current advancement that was started at 0.7330 should not extend by more than 140 pips, being that resistance at 0.7650 is the upper edge of the multi-year bearish channel, which has already managed to repel the bullish attack once on June 23.
© Dukascopy Bank SA
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