AUD/USD rallies and is almost to jump above 0.7805 former high. Technically, the outlook is bullish and the pair is expected to increase further. USDX's current decline pushed AUD/USD higher.
AUD appreciates even if the Australian Retail Sales have increased only by 0.6% versus 2.1% expected, while the Flash Services PMI and Flash Manufacturing PMI have decreased signaling the expansion slow down.
The greenback loses significant ground versus its rivals despite some good US data reported in the last days. Today, the US Flash Manufacturing PMI is expected to drop from 59.2 to 58.4 points, the Flash Services PMI may decline from 58.3 to 57.9, while the Existing Home Sales indicator could fall to 6.59M from 6.76M.
Ony better than expected US figures could save the greenback from the downside, otherwise it will depreciate further in the short term.
AUD/USD Extends Its Growth!
AUD/USD is traded at 0.7803 at the time of writing and will definitely try to take out the resistance from the R1 (0.7803) level. Closing above 0.7805 former high signals that the bulls are very strong and that AUD/USD should continue its upside journey.
The 0.7820 higher high is seen as an important upside target as well. Personally, I believe that a valid breakout above the R1 signals that AUD/USD will jump far above 0.7820.
As you can see on the H4 chart, AUD/USD is trapped between the Pivot Point (0.7727) and the R1 (0.7803). An upside breakout from this narrow range brings a long opportunity.
Buy a bullish closure above 0.7805 level and place a Take Profit at 0.7900 psychological level. Also, the R3 (0.7924) could be used as an upside target.