AUD/USD has managed to take out a dynamic resistance and now is ready to hit another upside obstacle. The bias remains bullish despite some exhaustion signs, the current sideways movement could represent an accumulation before AUD/USD resumes the upside movement.
The USD is going to lose ground versus its rivals in the short term as the USDX has accelerated its sell-off. Yesterday's USDX's massive drop has invalidated a potential corrective phase.
AUD/USD has tested and retested the broken downtrend line, it has escaped from the minor orange descending pitchfork's body and now is ready to reach the 0.6569 high. An upside valid breakout from the minor range will validate a further increase, the first upside target is seen at R1 (0.6727) level.
- AUD/USD Trading Tips
Long above the 0.6569 high if AUD/USD makes a valid breakout, the first upside target is represented by the monthly R1 (0.6727) level, while the second upside target is at R2 (0.6943). AUD/USD is signaling a bullish reversal in the long term if the pair stabilizes above the 61.8% retracement level.
A further increase will be invalidated by a false breakout with great separation, or a bearish engulfing above the 0.6569 high. Still, we'll have a great selling opportunity only if the pair decreases, closes, and stabilizes below the PP (0.6353) level.
