AUD/USD - 0.7500 cleared, onwards to 0.7670?
AUD/USD played by the book this week, and after experiencing a small bearish pullback on the Monday and Tuesday, that retested the 0.7400 support level, price continued to push up and through the next resistance level at 0.7500. This was predicated as an easy price to achieve after price broke through the 0.7400 level. Price is now situated well above 0.7500, closing the week out at 0.7530. The next level of resistance is now situated at 0.7670.
With the close above 0.7500 last week it is hard to see AUD/USD going anywhere but upwards this week, especially with a near-term daily ascending trend line following closely behind to act as support if required. If price pulls back to this level it may be an optimum position for a long entry. That being said, if price breaks and closes below the daily trend it could send prices back towards 0.7400.
The overall trend for this pair is very bullish. Even if price breaks and closes below the daily ascending trend line, there is now an even stronger weekly ascending trend line to take its place and the support levels in between.
With the close above 0.7500 last week it is hard to see AUD/USD going anywhere but upwards this week, especially with a near-term daily ascending trend line following closely behind to act as support if required. If price pulls back to this level it may be an optimum position for a long entry. That being said, if price breaks and closes below the daily trend it could send prices back towards 0.7400.
The overall trend for this pair is very bullish. Even if price breaks and closes below the daily ascending trend line, there is now an even stronger weekly ascending trend line to take its place and the support levels in between.