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AUD/USD 1H Chart 8/20/2012 11:20PM EDT

"AUD/USD

The AUD/USD has been in a declining channel as seen in the 4H chart below. But note that it remains above a rising trendline. After finding support at the rising trendline last Friday (8/17) at 1.0410, the AUD/USD rallied to start this week toward the channel resistance.

After pretty much sideways US session and, the AUD/USD rallied after the RBA minutes was released at 9:30PM EDT. There was some USD-weakness across the board, but the Aussie did appear to be the most aggressive.

The RSI pushed above 60 and is about to hit 70, which shows some near-term bullish momentum.

Still, the bullish intent will be tested again near the 1.05 handle, which where price might meet the declining trendline and the 200-hour SMA.

The 4H chart shows that a break above 1.05 and the counter-trend channel, might be a sign of trend resumption to the upside, exposing the August high at 1.0613. There is pivot zone between 1.0530 and 1.0540, which is the near-term level above 1.05 to monitor for resistance.

Holding within the declining channel pattern suggests another attempt to break the rising trendline, and more importantly push below the 1.04 handle. This exposes the next key support pivot n the 1.0170-1.0175 area.

AUD/USD 4H Chart 8/20/2012 11:25PM EDT

"AUD/USD

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.