The Australian dollar is on the rise against the US dollar, as risk-on trading sentiment towards financial markets starts to improve.
AUD/USD analysis shows that the pair may test towards the top of a falling price channel, around the 0.6300 level.
AUD/USD medium-term price trend
The Australian dollar has continued its recent recovery against the US dollar, as hopes increase that the spread of the coronavirus may finally be peaking.
In addition, the recent Reserve Bank of Australia policy meeting helped the Australian dollar move higher, as the central bank left monetary policy unchanged.
AUD/USD technical analysis shows that bulls may be targeting the top of a large falling wedge pattern, around the 0.6300 level.
The daily time frame also shows that a breakout above the wedge breakout could spark a stronger rally towards the 0.6400 level.
Failure to break from the falling price channel may result in the AUD/USD testing back towards the 0.6000 level.
AUD/USD short-term price trend
AUD/USD technical analysis highlights that the pair will turn bullish over the short term if price moves above the 0.6280 level.
The four-hour time frame highlights that a large neutral triangle pattern is starting to take shape.
The top of the triangle pattern is currently located around the 0.6530 resistance level, while the bottom of the triangle is found around the 0.6050 level.
It is also noteworthy that the recent rally has created a significant amount of bearish MACD price divergence, which extends down towards the 0.6060 level.
AUD/USD technical summary
AUD/USD analysis shows that the pair may soon test towards the top of a falling price channel, around the 0.6300 level. Failure to overcome the 0.6300 level may result in a pullback towards the 0.6000 level.