The AUD/USD pair edged higher today and now is trading at 0.6774 at the time of writing. The bias remains bullish as the Dollar Index is bearish. DXY's deeper drop forced the greenback to lose more ground versus its rivals.
Fundamentally, the USD took another hit from the US economic figures today. The PPI reported a 0.5% drop versus the 0.0% growth estimated, Core PPI reported a 0.1% drop even if the specialists expected a 0.2% growth, while Unemployment Claims came in at 239K in the past week versus 233K forecasts.
AUD/USD Upside Continuation!
Technically, AUD/USD turned to the upside and ignored the weekly pivot point (0.67), the R1 (0.6760), and the median line (ml). Breaking through the confluence area formed at the intersection between the R1 with the median line signaled further growth.
Still, after its amazing rally, we cannot exclude a temporary retreat. The rate could try to test and retest the immediate support levels before resuming its growth.
AUD/USD Forecast!
Testing and retesting the broken median line (ml), false breakdowns may announce a new bullish momentum. This could represent the first long opportunity. Also, a valid breakout above 0.6793 activates an upside continuation and is seen as a bullish signal.
