FX.co ★ AUD/USD More Upside In View

AUD/USD is trading in the green at the 0.7770 level and it could approach and reach new highs if the US Dollar Index drops further. The Dollar Index is located in the negative territory so a further drop is imminent.

Still, we cannot exclude a minor rebound registered by the DXY (USDX) after yesterday's sell-off. The US buyers have reacted badly to the US inflation growth. AUD/USD was into a temporary correction which has alreadyended, so more gains are favored.

AUD/USD Grows as DXY Drops

AUD/USD has found strong support below the major descending pitchfork's median line (ML) and right on the minor pitchfork's median line. It escaped from the minor pitchfork's body and from the triangle pattern.

It retested the weekly pivot point (0.7719) registering only a false breakdown with great separation, so an increase towards the R1 (0.7792) is favored.

Outlook!

Yesterday's false breakdown with great separation below the weekly pivot point of 0.7719 represented a bullish signal.