FX.co ★ AUD/USD likely to rise higher

AUD/USD has found strong support around the 0.7000 psychological level. Now it is about to reach a minor downtrend line. A valid breakout (breakout and re-test) above it could bring a great buying opportunity.

USD is losing ground as the US dollar index is likely to decrease in the short-term due to the US Presidential Election. If the Federal Reserve will introduce more stimulus measures to help the US economy, the US currency may weaken significantly.

• AUD/USD Trading Conclusion

So, if the price jumps and consolidates above the downtrend line, you can go long with a potential upside target at the 0.7404 former high. The failure to drop under 0.7 level will signal an upside breakout.