Title: AUD/USD Reverses Downtrend, Eyes Further Gains Towards 200-period SMA
AUD/USD has shown a strong reversal off the August 5 lows, signaling a new uptrend in the making. The pair is poised to continue climbing, potentially reaching the 200-period SMA in the 0.6630s.
After bouncing off the recent lows in early August, AUD/USD has displayed a bullish Japanese Hammer candlestick pattern on both the 4-hour and daily charts. This pattern suggests a shift in momentum towards the upside.
On the 4-hour chart, AUD/USD is forming higher highs and higher lows, indicating the development of a short-term uptrend. A break above the key resistance level at 0.6605 would confirm the continuation of the upward move, with a target near 0.6639, where the 200-period SMA and 50-day SMA converge.
The pair has already surpassed the 50 and 100-SMAs, reflecting strong bullish momentum. The RSI is not yet in overbought territory, suggesting there is still room for further upside potential.
In conclusion, AUD/USD is showing signs of a bullish trend reversal and is likely to extend its gains towards the 200-period SMA. Traders should keep an eye on the key resistance levels for confirmation of the upward momentum.