AUD/USD is fighting hard to jump higher after the impressive downside movement, but we still need a confirmation that we'll have a reversal on this pair. MACD has indicated a bullish divergence on the H4 chart, but we needed a valid breakout from the down channel to consider going long.

AUD/USD has finally managed to breakout from the descending channel, it has tested and retested the pivot point at 0.6709 level and now it seems determined to reach at least the R1 (0.6752) and the 23.6% retracement level. A valid breakout above the near-term resistance levels will clearly signal a broader upside movement.

The pair has opened with a gap up signaling strong buyers on the short term, it should increase as long as it is trading above the PP level. AUD/USD was rejected from the 0.6689 - 0.6676 support area, that's why we need to find long opportunities.

• Trading Tips

An important upside movement will be confirmed above R1 and above the 23.6% retracement level, the Stop Loss should be placed somewhere below the PP (0.6709) level or even below the 0.6676 level.

If the upside is confirmed, the next upside targets are seen at R2, R3, 38.2%, 50% and 61.8% levels. The potential leg higher will be invalidated by a valid breakdown below the 0.6676 static support.