Technical outlook:
AUDUSD is seen to be trading around the 0.6750 levels at this point in writing, looking to produce a bullish reversal. A break above 0.6765 would confirm that bulls are back in control. The overall structure still remains bullish with 0.6668 lows intact. AUDUSD earlier rallied between 0.6668 towards 0.6930 levels and since then it has produced a complex corrective structure like its peer EURUSD and NZDUSD respectively. The pair has found support at 78.6% retracement of the entire rally between 0.6668 and 0.7031 levels. Also note that a fibonacci convergence is also seen through 0.6735/40 levels. A bullish candlestick pattern is expected here to confirm resumption of the next leg higher. Until 0.6668 support remains intact, AUDUSD bulls remain in control and upside targets are market at 0.7200 levels at least.
Trading plan:
Remain long @ 0.6748/50, stop @ 0.6668 target 0.7200 and above.
Good luck!
