- Failing to stabilize under the 23.6% retracement level signals more gains again.
AUD/USD has turned to the upside after invalidating a broader corrective phase. The Aussie is back in charge as the USDX has plunged in the short-term. The pair has escaped from a descending pitchfork's body signaling further growth ahead.
Technically, AUD/USD is bullish despite the temporary decline. Some poor US data reported today could boost the pair. The US CPI is expected to register a 0.3% versus 0.4% in the former reading period, while the Core CPI may increase by 0.2% in January, more compared to 0.1% in December.
AUD/USD Set To Trade North!
As you can see on the H4 chart, AUD/USD has found strong support right below the 23.6% retracement level, around the S1 (0.7600) psychological level. Now, it has escaped from the descending pitchfork's body signaling that the short-term retreat is over.
AUD/USD has found temporary resistance near the R2 (0.7754) so it could retreat a little to retest the R1 (0.7715) or the pitchfork's upside line before resuming its upwards movement. Its failure to stabilize under the 23.6% retracement level signals that AUD/USD could pass above 0.7820 highest high soon.
Forecast & Tips!
Buy a bullish closure above the R2 (0.7754) using the R3 (0.7830) as the first upside target.
