AUD/USD Parallel Channel Setup – Breakout or Pullback in Play

The AUD/USD pair is trading within a clearly defined ascending parallel channel, with consistent rejections from both the upper resistance zone near 0.6550–0.6560 and repeated bounces from the rising support area near 0.6390–0.6400. This structured price movement indicates strong channel discipline, which traders can use for high-probability breakouts or reversal plays.

The current price action is approaching the upper boundary of the resistance, and a decisive breakout here could lead to a bullish rally toward the projected target.

📈 Bullish Breakout Scenario
If the price breaks and closes above the resistance zone (above 0.6560), it will confirm a bullish breakout from the channel. Based on the height of the channel, the projected breakout target is 0.67365, which is derived by measuring the vertical distance between support and resistance and projecting it upward from the breakout point. This could signal a major trend continuation in favor of the bulls.

📉 Bearish Rejection Scenario
If the price once again gets rejected at the resistance zone, a corrective move is expected toward the support area around 0.6400. The structure suggests that unless a breakout occurs, price may continue to oscillate within the rising channel. The next bearish leg could form a lower high and test the trendline support again.

🧭 Trading Strategy Outlook
Buy Breakout Strategy:

• Entry: Above 0.6560
  
• SL: Below breakout candle
  
• TP: 0.67365 (projected target)
  

Sell Rejection Strategy:

• Entry: Near 0.6550 resistance
  
• SL: Above 0.6570
  
• TP: 0.6400 support zone
  

This is a neutral-to-bullish setup, with a potential for continuation if the resistance breaks with strength. Traders should wait for confirmation before entering.

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