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AUD/USD is recovering from the lowest level since mid December and has formed a Rising Wedge pattern on the 4H chart. The pattern has 70% quality and 47% magnitude in the 73-bar period.
The pattern started when the pair bounced from 0.9689 and after testing resistance levels at 0.9897 and 1.00 it has slowed down at SMA200 level at 0.99885 where the pair is currently trading. Aggregate indicators do not suggest clear emerging trends at 4H and 1D time horizons, but the Stochastic indicator in the 1W time horizon points at a bull market outbreak. Current market sentiment it is around 70/30 in favor for the bulls as well. Long traders could focus on the daily resistance level at 1.001. If this level is breached, next target could be at 1.0035.
The Stochastic indicator on the 4H and the 1D time horizons suggests bear market outbreak. Short traders could focus on the daily support level at 0.9964. If the pair breaches this level, next possible target could be at 0.9936.
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