The AUD/USD pair quickly progressed to the top around 50 pips in the last hour and has now risen to the higher end of its daily trading range, around the 0.7398 - 0.7455 region.
The AUD/USD pair has extended its rally to 0.7432 this morning, ending it a handful of pips below it. The AUD/USD pair has been steadily but painfully advancing against its American peer.
With 0.7398 minor support intact (1st support, pivot point, 50% of Fibonacci), further rise is expected in the AUD/USD pair. Current rally from 0.7398 should target 0.7455 key long term fibonacci level.
Further close above the high end may cause a rally towards 0.7455. Nonetheless, the weekly resistance level and zone should be considered.
Therefore, strong support will be found at the level of 0.7398 providing a clear signal to buy with a target seen at 0.7455.
The AUD/USD pair is showing signs of strength following a breakout of the highest level of 0.7398.
If the trend breaks the minor resistance at 0.7455, the pair will move upwards continuing the bullish trend development to the level 0.7492 in order to test the daily resistance 2.
On the H1 chart. the level of 0.7398 coincides with 50% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 50% Fibonacci level, the market is still in an uptrend.
But, major support is seen at the level of 0.7340.
Furthermore, the trend is still showing strength above the moving average (100).
Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
The market is likely to show signs of a bullish trend around the spot of 0.7398 - 0.7455. In other words, buy orders are recommended above the spot of 0.7398 - 0.7455 with the first target at the level of 0.7455 ; and continue towards 0.7492, then 0.7527.
On the downside, however, break of 0.7340 will indicate short term topping and turn bias back to the downside for pull back. If the AUD/USD pair fails to break through the resistance level of 0.7340 today, the market will decline further to 0.7232.
