AUDUSD could move higher towards 0.7540.

AUDUSD has respected the support area around 0.7425 and is now bouncing higher ready to form higher highs and higher lows. Our price target is around 0.7540 if bulls mange to push price above 0.75.

Red line - bullish divergence

Blue lines - expected path

AUDUSD is showing reversal signs. Price is bouncing from important short-term lows. The RSI has provided us with a warning bullish divergence and we continue to favor the bullish scenario as long as price is above 0.74. Major resistance remains the recent high of 0.7580. Bulls need to recapture this level in order to change trend to bullish.