AUDUSD is forming higher lows and higher highs inside a rising channel on its short-term time frame. Price is testing the resistance near the .6600 major psychological mark and looks ready for a pullback to support.

The Fibonacci retracement tool shows where more buyers might be waiting. The 38.2% level is near the .6500 major psychological mark while the 50% Fib is at .6450 near the mid-channel area of interest. A larger correction could reach the 61.8% Fib at .6430 or the channel bottom closer to the .6400 handle.

If any of these Fib levels hold as support, AUDUSD could make its way back up to the swing high. The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the uptrend is more likely to gain traction from here.

Stochastic is on the move down to show that sellers have the upper hand, but the oscillator is also dipping into the oversold region to signal exhaustion. Turning back up would confirm that bullish pressure is picking up.

RSI has a bit of room to slide before reaching the oversold area, so sellers might still have some energy left to keep the correction going. The rally could resume once the oscillator reaches the oversold region and turns back up.

The FOMC minutes released earlier this week revealed that the Fed is not looking to cut interest rates anytime soon, even though policymakers reiterated that they are likely done with tightening.

Prior to that, the minutes of the RBA policy meeting signaled that officials are retaining their hawkish bias, which suggests they could be open to resuming their rate hikes soon. This could mean that the Aussie is on stronger footing versus the US dollar in the near-term.