The Australian currency has oscillated against the U.S. Dollar in an upward channel since mid-October. Since beginning this trend, the pair has hit resistance on at least four occasions and has touched support by just as much.
Three weeks ago, we saw that the pair hit resistance once again, only to fail to return to support. Instead, AUDUSD fell slightly only to retrace upwards. This could be a sign that selling pressure on the pair is very weak and that the buyers may be pricing-in fundamental Australian Dollar support.
We need look towards resistance to see if the pair breaks down or if it breaks. A penetration of this key level could insinuate a reversal of the trend which has brought the pair down from nearly 0.9800 down to a low of almost 0.6000.
