AUD/USD technical analysis: Ascending trend-channel support prospects for additional gains

   •  The AUD/USD pair built on this week's bullish break through the 0.6935-40 supply zone and climbed to near four-week tops on Wednesday, beyond the key 0.70 psychological mark.

   •  The recent uptrend over the last four trading sessions has been along an ascending trend-channel on the 1-hourly chart and support prospects for an extension of the positive move.

However, slightly overbought conditions on the 4-hourly chart seemed to be the only factor holding investors from placing aggressive bullish bets. Meanwhile, oscillators on the daily chart maintained their bullish bias and have also eased from the overbought territory on the 1-hourly chart, adding credence to the constructive outlook.

The set-up remains in favour of bullish traders and hence, the pair seems more likely to aim towards testing the trend-channel resistance, currently near the 0.7035 region. The mentioned barrier coincides with 50% Fibonacci retracement level of the 0.7206-0.6865 downfall and might keep a lid on any subsequent up-move. 

On the flip side, the lower end of the trend-channel, currently near the 0.6985 region, seems to protect the immediate downside, which if broken might negate the bullish set-up. Weakness below the mentioned support might prompt some technical selling and drag the pair back towards an important resistance break-point, now turned support around the 0.6940-35 region.

AUD/USD 1-hourly chart