The Australian Dollar has rallied nearly 2% off the yearly lows with prices now eyeing initial resistance hurdles. While the broader outlook does remain constructive, near-term the risk for a pullback in price has us looking for a possible exhaustion pullback to offer more favorable opportunities.
AUD/USD Daily Price Chart
Technical Outlook: Earlier this month we highlighted a critical weekly support confluence in AUDUSD with while noting that, “the immediate short-bias is at risk heading into 7612/37 and from a trading standpoint I’ll be looking for evidence of a near-term low in this range.” Price registered a low at 7643 before rebounding with the advance now targeting initial resistance targets at 7793 (100-day moving average) & 7812/15 where the 61.8% retracement converges on slope resistance and the 200-day moving average.
Note that price is poised to post and outside-day reversal into these resistance targets and while the broader outlook remains weighted to the topside the move does warn of possible near-term exhaustion. Monthly open support rests at 7690 with our broader bullish invalidation steady at 7637/45. A topside breach above basic slope resistance targets a rally towards 7876/89 (March high-day close & 50% retracement).
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AUD/USD 240min Price Chart
Notes: A closer look at price action sees AUDUSD trading within the confines of an ascending pitchfork formation with prices reversing off the upper parallel last week. Aussie found support at the median-line today and the focus is on another possible exhaustion stretch into 7812