FX.co ★ AUD/USD Reverses

AUD/USD has registered an impressive growth after failing to retest the descending channel's downside line. It has jumped above the downtrend line signaling an upside reversal. The downside movement could be over if the price stabilizes above the downtrend line and beyond the 0.7305 former low.

In the short term, we cannot exclude a temporary decline. AUD/USD could come back to test and retest the broken downtrend line before resuming its upside movement. Only failing to stabilize above the downtrend line could invalidate the upside reversal.

Trading Conclusion

Stabilizing above the broken downtrend line and above 0.7305 level which has represented an upside obstacle (support has turned into resistance) could indicate that AUD/USD could extend its growth towards 0.74 and 0.75 levels.