AUD/USD Forex Technical Analysis – Aggressive Bullish Traders Eyeing .7677 as Next Major Upside Target

The Australian Dollar surged to the upside on Thursday, hitting a 2-1/2 year peak, on strong iron ore prices. The Aussie was also helped by a weaker U.S. Dollar, which fell in reaction to the release of weaker-than-expected jobless claims data, which increased the urgency for U.S. lawmakers to push through new fiscal stimulus before year-end.

At 16:10 GMT, the AUD/USD is trading .7524, up 0.0083 or +1.11%.

Initial weekly jobless claims jumped to 853,000 last week, topping a Dow Jones estimate of 730,000. That marks the highest number of initial claims being filed since September and the first time since October that they topped 800,000.

Thursday’s report stoked fears about economic recovery moving forward as Congress tries to put together a new stimulus package.

Expectations of a strong economic recovery and enthusiasm over the Pfizer–BioNTech vaccine rollout in the U.K. recently pushed the higher-risk Australian and New Zealand Dollars to multi-year highs.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Thursday when buyers took out the July 9, 2018 main top at .7484. The main trend changes to down on a trade through .7339.

The minor trend is also up. A trade through .7372 will change the minor trend to down. This will also shift momentum to the downside.

Short-Term Outlook

The upside momentum could build over .7484. Since there is no visible resistance, this rally could eventually extend to the June 6, 2018 main top at .7677.

The first sign of a significant top will be a closing price reversal. A break back under .7484 will also indicate the selling is getting stronger or the buying weaker.

The fundamentals will remain bullish as long as the stock market continues to rise, stimulus negotiations continue and the vaccinations go off without a hitch.