FX.co ★ AUD/USD Higher High Precedes Breakout!

AUD/USD has rallied again as the USDX has plunged in the short term. The pair is trading at 0.7138 and it could jump way higher as the bearish divergence was invalidated by the last development.

The pair has managed to make another higher high signaling a further growth in the upcoming period. AUD/USD has reached a dynamic resistance, but most likely it will take it out and it will approach fresh new highs.

AUD/USD has reached the median line (ml) of the ascending pitchfork after ignoring the 0.7064 static resistance and the 50% Fibonacci line. The outlook was still bullish as long as AUD/USD was traded within the ascending pitchfork's body, above the lower median line (lml).

The pair has made an aggressive breakout above the R1 (0.7095) level signaling strong momentum. A valid breakout above the median line (ml) will suggest buying, the next upside targets are seen at the upside 50% line, at the R2 (0.7288), and at the upper median line (uml).

• AUD/USD Trading Tips

You could buy a valid breakout above the median line (ml), a jump above the 0.7167 high, or a consolidation above the R1 (0.7095) level. The next upside targets could be represented by the R2 (0.7288).

The potential broader increase could be invalidated only by a valid breakdown below the lower median line (lml) and below the 0.7064 level.