AUD/USD Price Analysis: Inverted head-and-shoulders confirmed, targets 0.7440
- The AUD/USD is set to finish at fresh nine-week highs, propelled by an improved risk appetite.
- An inverted head-and-shoulders in the daily chart targets the 0.7440 area as its profit target.
- AUD/USD buyers eye a break above the 200-DMA as they aim towards 0.7440.

The AUD/USD advances for the third straight day, but retraces from the two-month high, reached at 0.7136, so far clinging above the 0.7100 mark, which could open the door for further gains. Therefore, the AUD/USD is trading at 0.7121, bolstered by a risk-on impulse, after US consumer sentiment data exceeded estimates during a week that US inflation cooled down.
AUD/USD Price Analysis: Technical outlook
During the week, the Aussie cleared the 100-day EMA at 0.7081 and now exchanges hands between the latter and the 200-day EMA at 0-7149, shifting the major’s bias to neutral-upwards. Worth noting that once the AUD/USD cleared above 0.7067, the inverted head-and-shoulders neckline confirmed the chart pattern, which has as its first profit target, 0.7440.
However, on its way up, the AUD/USD’s first resistance would be the August 11 high at 0.7136. Once cleared, the next stop would be the 200-day EMA, followed by the May 5 high at 0.7266.
AUD/USD Key Technical Levels
Author

Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

















