The AUD/USD pair has continued its recent recovery from the 0.6680 level, with the advance so far extending towards the 0.6750 level.
AUD/USD analysis shows that bulls need to rally price towards the 0.6770 level to force the next major upside breakout in the pair.
AUD/USD medium-term price trend
The Australian dollar has been on the rise against the US dollar, as antipodean currencies gain back lost ground this week.
AUD/USD technical analysis shows that the pair still remains vulnerable to further medium-term losses while trading below the 0.6800 level.
The daily time frame shows that the pair is currently trapped inside a falling wedge pattern and could sink towards the bottom of the pattern if bulls fail to overcome the 0.6800 level.
The daily time frame also shows that the bottom of the wedge pattern is currently found around the 0.6625 level.
Traders should carefully monitor the 0.6770 to 0.6800 resistance area carefully, especially if AUD/USD bulls do move price above the area.
AUD/USD short-term price trend
AUD/USD technical analysis highlights that the pair has a negative bias over the short term while price trades below the 0.6830 level.
The recent rally in the AUD/USD pair fell just short of the 0.6770 level and has created a bearish lower high on the lower time frames.
If bulls can move the price towards the 0.6770 level, a bullish reversal pattern will then form and the AUD/USD pair then has the potential to rally towards the 0.6900 level.
It is certainly worth noting that the one-hour time frame shows the presence of positive MACD price divergence, which extends towards the 0.6840 level.
With this in mind, the AUD/USD pair could start to build on its recent recovery and actually break above the 0.6770 area over the coming days.
AUD/USD technical summary
AUD/USD analysis shows that bulls need to overcome the 0.6770 level to encourage the next stage of the recent recovery. The upside for the pair could easily extend towards the 0.6840 level due to the presence of positive MACD price divergence on the lower time frames.