Technical outlook:
AUDUSD has risen through the 0.6935 mark at the time of writing after carving a higher low around the 0.6850 mark on Tuesday. The daily chart is unfolding an engulfing bullish candlestick pattern right now, which is a potential trend reversal. Bulls will be poised to hold prices above the 0.6800 mark to keep the structure intact.
AUDUSD has been unfolding a countertrend rally since reaching the level of 0.6830. The first and second waves of the corrective phase might have terminated around the 0.7289 and 0.6850 levels respectively. If the above structure holds well, the last leg rally is due to resume sharply through the 0.7450 level in the next few trading sessions.
AUDUSD is working on a larger degree downswing between 0.7660 and 0.6830 as presented on the daily chart. A minimum target is projected towards the 0.7450 mark, which is close to the Fibonacci 0.786 retracement of the above downswing. Please note that a break above 0.7660 will confirm a potential trend reversal on a larger scale.
Trading plan:
Potential rally through 0.7450 against 0.6800
Good luck!
