AUD/USD pushed higher on the short term after the impressive downside movement. It is trading at 0.6629 level and it seems strong enough to resume the bullish momentum after the failure to retest the broken resistance levels.
AUD continues to increase despite the poor Australian Retail Sales, the economic indicator decreased by 0.3% in January, even though the economists had expected to see a 0.0% growth. AUD/USD increases as the USDX's accelerates it's sell-off, the USD could be saved from downside only by good figures posted by the NFP, Unemployment Rate and Average Hourly Earnings.
AUD/USD has escaped from the down channel, it has retested the downtrend line and now it looks ready to climb higher. The price is somehow expected to increase after the failure to retest the 23.6% retracement level.
The next upside target is represented by the 0.6645 high, a valid breakout will signal a jump way above the 38.2% level. The 0.6676 - 0.6689 represents an important upside obstacle, but the price could take out this resistance if it will make another higher high and if it will confirm the reversal.
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AUD/USD could register an important upside movement if it will make another higher high, to jump and close above the 0.6645 high. The 61.8% retracement level could be considered as a potential target if the scenario will be validated.
A potential upside movement could be invalidated only by a drop below the 23.6% retracement level. You should be careful because the US data will bring a high volatility on this pair as well today. AUD/USD has signaled a potential reversal after the major false breakdown below the downside line of the descending channel, the price has developed a Pin Bar, but it was important for the price to make a valid breakout from the chart pattern to consider going long again.
