Technical outlook:
AUDUSD rose through the 0.7070 mark on Thursday before finding resistance. The currency pair is pulling back and is seen to be trading close to the 0.6995 mark at this point of writing. Also note that prices have confirmed a huge Engulfing Bullish candlestick pattern on the daily chart after bouncing from the 0.6850 low early this week.
AUDUSD bulls will be poised to hold prices above 0.6850 to remain in control and push at least towards the 0.7450 level going forward. The currency pair seems to be unfolding a corrective rally, which might terminate above 0.7275 before reversing lower again. Immediate price resistance is seen towards the 0.7660 mark and a break is required to confirm a change in the larger degree trend.
AUDUSD is working on a meaningful downswing between the 0.7660 and 0.6830 levels for now. The 0.618 Fibonacci retracement of the above drop is seen through the 0.7345 mark as projected on the daily chart. The currency is expected to face formidable resistance as prices attempt to push through that mark going forward.
Trading plan:
Potential rally through 0.7300-400 against 0.6800
Good luck!
