AUD/USD persisted higher this week, closing out above resistance at 0.7400. After a stumble from 0.7400 on Monday, price rallied for the remainder of the week pushing its way above the descending daily and weekly trend lines that have held price in place during previous weeks. With weekly closes now evident above these descending trend lines, a change in the longer-term trend must be envisaged.
The next level of resistance for AUD/USD, which also happens to be another psychological level is 0.7500. Last week we mentioned that if price closed above 0.7400 there was then little to stop AUD/USD reaching this level. As the break above 0.7400 has now happened, we see price testing at least the 0.7500 level. This may or may not come during next week.
For the upcoming week, any bearish pullbacks we will see as buying opportunities. However, if there is a daily close back below 0.7400, we will reassess to see if there is the potential for AUD/USD to pullback further.
The next level of resistance for AUD/USD, which also happens to be another psychological level is 0.7500. Last week we mentioned that if price closed above 0.7400 there was then little to stop AUD/USD reaching this level. As the break above 0.7400 has now happened, we see price testing at least the 0.7500 level. This may or may not come during next week.
For the upcoming week, any bearish pullbacks we will see as buying opportunities. However, if there is a daily close back below 0.7400, we will reassess to see if there is the potential for AUD/USD to pullback further.