- AUD/USD looks north with the hourly chart reporting a bullish continuation pattern.
- Risk reset, as indicated by the uptick in the S&P 500 futures, could add to the bullish tone around the AUD.
AUD/USD is currently trading at 0.6791, the highest point of the day, and could extend the gains toward 0.6850.
This is because the hourly chart is reporting a pennant breakout, a bullish continuation pattern. The breakout has opened the doors for 0.6835 (target as per the measured move method). A violation there would expose the 21-day moving average at 0.6850.
Supporting the bullish technical setup are the signs of risk reset in the financial markets. Notably, the futures on the S&P 500, a benchmark for riskier assets across the globe, are currently reporting a 0.57% gain.
The outlook would turn bearish if the pair drops below 0.6765, invalidating the higher lows setup on the hourly chart.
- R3 0.684
- R2 0.6816
- R1 0.6795
- PP 0.677
- S1 0.6749
- S2 0.6724
- S3 0.6704
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