AUD/USD has been swinging back and forth within its range since March, but seems to be considering a breakout soon.
As you can see from the 4-hour chart below, the pair has been hovering around the resistance at 0.6800 for some time.
Now this is her fourth attempt to break through the roof in the past two months. Will you finally succeed this time?
Forex AUD/USD for 4 hours Planned by TV
If it continues to break upwards, the price may be in an uptrend at least as high as the range pattern.
That would be nearly 200 points yo!
But what do the technical indicators say?
The moving averages are still swinging to reflect sideways price action, but the moving averages appear to be moving higher and the 100 SMA may be heading for a bullish crossover.
Stochastic is in the middle area, which also indicates consolidation, but pulling higher will confirm the return of the bullish momentum.
However, if the sellers continue to win, AUD/USD could drop to the bottom of its range at the 0.600 mark or at least until the area of interest in the middle.
The latter coincides with the dynamic support at the moving averages, which could make it a viable support area.
Just keep in mind that the US dollar has been under some selling pressure lately, as traders fret about the risks of a “soft recession”, banking contagion problems and debt ceiling issues.
In contrast, the Australian dollar was supported by a relatively bullish stance on RBA policy, as well as higher gold prices.
However, a return in risk-off flows could end up favoring the safe-haven dollar, so better stay tuned for major shifts in market sentiment!