AUD/USD: Bullish Continuation or Reversal on the Horizon?

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The AUD/USD currency pair is currently exhibiting interesting chart patterns that hint at a potential continuation of the uptrend or a possible reversal.

Bullish Signs:

  • Channel Uptrend: The AUD/USD has been trading within a rising channel on the four-hour chart, suggesting a short-term uptrend.
  • Bull Flag Pattern: A potential Bull Flag continuation pattern is forming within the channel. This pattern typically indicates a pause in the uptrend followed by a breakout and further upside movement.
  • Confirmation: A break above the consolidation area (shaded rectangle on the chart) and the May 16th highs of 0.6714 would confirm the Bull Flag and signal a potential extension of the uptrend.

Bullish Targets:

  • Initial Target: 0.6728
  • Further Upside: 0.6788

Bearish Signal:

  • Trendline Break: A decisive break below the red trendline on the chart would be a bearish sign, suggesting a potential reversal of the short-term uptrend.
  • Confirmation of Break: A long red candle closing near its low or three consecutive red candles breaching the trendline would solidify the bearish signal.


The AUD/USD is at a crossroads. The Bull Flag pattern suggests a continuation of the uptrend if confirmed, while a break below the trendline could indicate a potential reversal. Traders should monitor the price action closely and watch for confirmation of either the bullish or bearish signals before making any trading decisions.

Key Points:

  • Uptrend channel and Bull Flag pattern suggest potential bullish continuation.
  • Break above 0.6714 confirms Bull Flag with targets at 0.6728 and potentially 0.6788.
  • Decisive break below red trendline indicates a possible bearish reversal.

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