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AUD/USD Tests This Week's Falling Channel

The AUD/USD continues to consolidate in October. This week it is still within the October range, but fell from 0.8830 to 0.8720 in a choppy manner, within a falling channel. The 110 pip range for one entire week is relatively low. This has been the theme - a bit of congestion, awaiting a breakout. 

Today as we head into the weekend, the AUD/USD is looking to shake things up, threatening this week's falling channel as you can see in the 1H chart. 

(click to enlarge)

A break above 0.8790 should clear the channel resistance and signal a bullish outlook in the short-term, especially if the RSI pops up above 60. It would essentially open up 0.8830, not that much of a projection because it is still within October's sideways mode.

We should limit any bullish outlook to the 0.8850, then 0.89 resistance levels for now.

AUD/USD 4H Chart 10/24(click to enlarge)

Now, if price still holds below 0.80, the bias after this week is bearish, and another lower low could put price around 0.87 next week, with pressure toward the 0.8646 low on the year if 0.87 breaks.