The chart below shows a screenshot of the AUD/USD in a rising channel. But more recently it is trading in a sideways range within this channel. A bullish breakout is preferred as it would follow the trend and stay above the 200-SMA. However, a break below the range suggests further correction with focus on the rising channel support. A break of that trendline then opens up real bearish outlook.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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