The AUD/USD pair is pulling back after it reached new historical high last week. As it was mentioned before, the breakout of the resistance level 1.00 targeted the currency pair at 1.05.
At a week graph the AUD/USD has formed the bullish combination of candlesticks Bullish Engulfing, which indicates the uprising tendency, confirmed further.
In favor of the upwards movement comes the fact that this combination of candlesticks appeared on the uptrend after a rebound from the support level of 0.8066, as well as from the Fibonacci correction level 38.2, where the bears could not solidify and the bulls started to increase their influence.
This combination of candlesticks shows that the currency pair was decreasing after it failed to break through the resistance level of 0.9394. However, the pair reversed near 0.8066.
The fact that the AUD/USD has breached the mark of 0.8855 means that this point of view is correct.
On the other hand the long positions should be closed if the support level is broken through, as it will lead to decline to 0.8765.
