AUDUSD in short corrective phase within broader uptrend

DESPITE the strengthening of the US dollar, the AUDUSD managed to appreciate against the greenback after hitting a 2022 low at 0.69671 on Jan 28. Since then, the pair has trended higher in an ascending channel that stretches back to December 2021.

At the time of analysis (Apr 8, 2022), the pair is trading within the rising channel, after retreating from a failed attempt to close above the channel resistance line. In spite of the short term pullback, various technical setups still point towards a bullish trajectory for the AUDUSD.

Apart from the rising channel that indicates the pair is in a current uptrend, AUDUSD has also displayed a bull flag formation. A bull flag is identified when prices form a series of bullish candles (resembling a flag pole), followed by a small descending channel, which looks like a flag. This chart pattern is a bullish continuation pattern which means prices tend to rise further upon breaking above the flag.