AUD/USD Bullish Breakout Targeting 0.6585 After Channel Reversal

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AUD/USD 1H Chart Analysis – Bullish Setup

🔹 Trend & Structure:

Price formed a Higher High (HH) on July 24, followed by a strong downtrend inside a descending channel.

A Higher Low (HL) formed on July 31, suggesting possible bullish reversal.

🔹 Channel & Breakout:

Price has broken above the descending channel resistance, signaling a bullish breakout.

The breakout aligns with a retest of the 0.64537–0.64759 key support zone (blue area), now acting as demand.

🔹 EMA Strategy:

The price is above the 70-period EMA (0.64642), confirming bullish momentum.

🔹 Target Projection:

The measured move shows a target at 0.65855, representing a 1.70% upside (110.3 pips).

The breakout retest provides an entry with stop below 0.64500 for a favorable risk/reward.

🔹 Strategies Applied:
✅ Trend Reversal – HH & HL structure indicates a bullish trend change.
✅ Channel Breakout – Exit from descending channel confirms bullish momentum.
✅ Support/Resistance Flip – Key support zone aligns with the entry area.
✅ EMA Confirmation – Price above EMA supports long positions.
✅ Measured Target – Projection to 0.65855 sets a clear objective.

Summary:
Bullish momentum confirmed by breakout and support retest. Entry above 0.6475 targets 0.6585 for a potential 110+ pips gain.

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