AUD/USD Price Analysis: Carves out a bull pennant on the hourly chart

• AUD/USD is sidelined near 0.7135 in Asia, having clocked a high of 0.7147 on Tuesday. 
• A pennant breakout on the hourly, if confirmed, could yield invite stronger buying pressure.

AUD/USD's nine-hour-long consolidation in the rage of 0.7125 to 0.7150 has taken the shape of a pennant or a contracting triangle. 

A pennant breakout, if confirmed with an hourly close above 0.7145, would imply a continuation of the rally from the July 19 low of 0.6973 and could yield a re-test of 0.7206 (April 17, 2019 high). 

On the other hand, a pennant breakdown would mean the rally from lows below 0.70 has ended and could be followed by a pullback to the former resistance-turned-support of 0.7064 (June 10 high). 

A breakout looks likely as the sentiment for the greenback is quite bearish with risk assets cheering the groundbreaking European Union fiscal deal and progress on the coronavirus vaccine.

Hourly chart

Trend: bullish

Technical levels