AUD/USD Price Analysis: August Uptrend Correction

• AUD/USD is correcting within its short-term uptrend.
• The pair broke below a key trendline but recovered in recent periods.

AUD/USD is correcting after becoming overbought.

The pair is pulling back below the trend line of its short-term uptrend in August – a bearish sign – however, it has also followed higher in recent periods, having made a swing low at 0.6697 on August 22.

AUD/USD 4 Hour Chart

AUD/USD is likely still in a near-term uptrend, which given the trend is your friend favors further upside. The pair could continue up to 0.6799, the July 11 high. A break back above the August high of 0.6761 would help further confirm the upside.

A break below 0.6697 (swing low and August 22 low), however, would indicate that the correction needs to decline further, perhaps to a downside target at either the 50-period simple moving average (SMA) at 0.6683 , either at 200 SMA. to 0.6636.