AUD/USD Technical Analysis: Eyes 50-day MA of 0.7373 after a bull flag breakout

• The AUD/USD 15-minute chart shows a bull flag breakout –   a bullish continuation pattern – which indicates the rally from the low of 0.7309 has resumed and has opened the doors to 0.7395 (target as per the measured height method).
• The bullish breakout gels well with the improved risk appetite seen after President Trump’s deal with Mexico.

15-minute chart

Spot Rate: 0.7350

Daily High: 0.7355

Daily Low: 0.7343

Trend: Bullish

Resistance

R1: 0.7357 (previous day’s high)

R2: 0.7373 (50-day moving average)

R3: 0.74 (psychological hurdle)

Support

S1: 0.7318 (July 20 low)

S2: 0.7292 (50% Fib R of 0.7202/0.7382)

S3: 0.7271 (61.8% Fib R of 0.7202/0.7382)