FX.co ★ AUD/USD targeting fresh highs

The AUD/USD pair is trading in the green at 0.7422 level below 0.7426 today's high. The bias is bullish in the short term after the Dollar Index has turned to the downside. The pair has taken out strong resistance levels, so more gains are expected.

Today, the Australian and the US data have come in mixed. The Australian Unemployment Rate increased from 4.5% to 4.6% failing to reach 4.8% expected, while the Employment Change was reported at -138.0K versus -108.5K estimates.

On the other hand, the USD received a helping hand from the Unemployment Claims which was reported at 293K far below 315K expected by the specialists. The PPI and the Core PPI have come in worse than expected, so the greenback could depreciate again. Tomorrow, the US is to release its retail sales figures. Poor economic data could weaken the USD.

AUD/USD Head & Shoulders

As you can see on the H4 chart, the AUD/USD pair was somehow expected to grow after validating the Inverse Head & Shoulders pattern. Its breakout above 0.7316 activated the reversal pattern.

Now it is located at 0.7416 level above the weekly R2 (0.7402) obstacle. Stabilizing above it may signal further growth. The R3 (0.7466) and the 0.7478 levels are seen as potential upside targets.

AUD/USD forecast

A minor consolidation above the weekly R2 (0.7402) could bring new long opportunities. Failing to stabilize above this level may announce a short-term retreat. As long as it stays within the Ascending Pitchfork's body, AUD/USD could climb higher.

The level of 0.7478 is seen as an important upside target, an obstacle if the AUD/USD continues to increase. Personally, I would like to see a minor consolidation before the pair resumes its growth.