AUD/USD rallied in the early morning and now is traded at 0.7138. The bias remains bullish as the Dollar Index extended its corrective phase. Technically, the price action signaled further growth after taking out a strong resistance level.
The Australian Retail Sales rose by 0.9% matching expectations. Later, the US data could bring more volatility. Core PCE Price Index could report a 0.3% growth, Revised UoM Consumer Sentiment is expected at 59.1 points, while the Goods Trade Balance may increase from -127.1B to -114.8B. In addition, Personal Spending could report a 0.7% growth while Personal Income is expected to register a 0.5% growth.
AUD/USD Strongly Bullish!
AUD/USD found support at the 0.7053 level and now is trading back above the median line (ml) of the ascending pitchfork. As long as it stays above this line, the currency pair could resume its growth.
Technically, the current breakout through the weekly R1 (0.7120) signaled strong buyers and potential continuation. The most recent sideways movement represented an accumulation before resuming its growth.
AUD/USD Outlook!
Validating the current breakout, testing, and retesting the broken R1 (0.7120) could activate further growth and could bring new long opportunities with a first potential target at the 0.72 psychological level.
