AUD/USD 4H Chart: Channel Up

Although for the most part of this month the Aussie has been moving south, the exchange rate is still within the boundaries of the three-month bullish channel. Accordingly, unless AUD/USD breaches the key support at 0.9255 (the lower up-trend line), the outlook should remain positive. Once the market confirms this level, the pair will be expected to commence a robust recovery, which could potentially extend up to 0.96. However, the SWFX market participants do not consider the Australian Dollar to be capable of appreciating, they view the currency as overvalued instead—as many as 67% of them are presently holding short positions.