FX.co ★ AUDUSD vulnerable to a pull back towards 0.72

AUDUSD recently broke above the key short-term resistance trend line at 0.7151 and has risen from 0.70 to 0.7320. Price is pulling back now and we expect price to touch 0.72 and maybe lower levels. The bullish scenario sees price forming a higher low around 0.7130-0.7150 before continuing higher.

Black lines - Fibonacci retracements

AUDUSD has most probably completed the upward move from 0.70 to 0.7320. Price is expected to turn lower in order to form a higher low. The most possible area of retracement is between the 38% and 61.8% Fibonacci levels. When and if price pulls back inside this area, I would start looking for long positions once again. Having broken above the blue trend line resistance is an important break out. I expect follow through.