Aussie Bulls Target 0.72715 As Weekly & Daily Trends Strengthen

AUD/USD Holds Firm as Aussie Outperforms Weaker Risk Currencies

AUD/USD is flat during the session. No economic data out for Australia so there’s little for the markets to react to. The USD appears to be firm relative to the other majors with GBP/USD down over 10 bps, NZD/USD down over 20 bps and USD/JPY up over 0.25%. AUD/USD needs some fresh momentum to take it higher and break through further resistance.

Currency Heat Map Shows AUD/USD Flat on the Session

Currency Heat Map

Source: TradingView

AUD/USD Weekly Breakout Tests 0.72715 Resistance

The medium term upward price move of AUD/USD continues. The FX pair is above the Dual Supertrend utilized and is attempting to breakout above 0.72715 which is a Fibonacci target level. There’s a solid bullish trend structure for the FX pair and a solid start to the week thus far.

AUD/USD Weekly Chart Shows Price Extending Above Supertrend Support

AUD/USD Weekly Candlestick Chart

Source: TradingView

AUD/USD Daily Rally Holds Above 21-EMA

Zooming in a bit into the Daily chart you can see the step by step upward bias for AUD/USD. RSI is above 60 which illustrates a solid bullish trend along with the FX Pair trading above the 50-EMA. We can also see that AUD/USD has broken above the previous pivot high around 0.71876. Hopefully resistance becomes interim support in this instance.

AUD/USD Daily Chart Showing Demand in Control

AUD/USD Daily Candlestick Chart

Source: TradingView

AUD/USD Renko Holds Bullish Structure as Momentum Cools

While the overall trend is up from the Renko view there is a negative flip on the Supertrend, indicating a brief pullback for AUD/USD. Nonetheless it does appear to be minor as the RSI is back above 50 and the Z-Score SMA has settled and is making another attempt higher. Expectations are for a retest of the 0.72775 resistance level. A flip in the supertrend is needed for confirmation.

AUD/USD 0.001-Brick Renko with Slight Pullback

AUD/USD 0.001-Brick Renko Chart

Source: TradingView

The Verdict

Current Trend Direction: Bullish

Bias: Positive

Support Levels: 0.6833,0.70720

Resistance Levels: 0.72715, 0.74070

Medium Term Path: AUD/USD continues to be bullish in the medium term. The FX pair is holding above key levels of support over multiple timeframes and the Renko structure. Short term pullbacks are expected in this type of upward price movement so it is only a buying opportunity for traders. The next level to watch for AUD/USD is 0.72715 resistance and a breakout is warranted given the current structure.