AUD/USD is demonstrating price correction and has formed a Channel Up pattern on the 1H chart. The pattern has 79% quality and 90% magnitude in the 91-bar period.
The pattern started when the pair rebounded from the last week's peak at 1.0281 and slowed down at 1.0278 after testing pattern's resistance band at 1.0101 and 1.0203. The SWFX market sentiment is almost equally divided between bears and the bulls with 55% of the traders expecting appreciation of the pair. Technical indicators also suggest a bullish market outbreak on 1H, 4H and 1D time horizons indicating a high probability that the pair will continue to follow pattern's trend. Long traders could focus on the recent pattern's support level test at 1.0309. If the pair breaches these levels next targets could be set at a 4th of July peak at 1.0321 and July high at 1.0330.
Short traders who expect that the pair will continue to move towards pattern's support could set the first target around 1.2700. If this level is breached, next targets might be at the 16th of July peak at 1.0260 and at 17th of July low at 1.0238.