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  • AUD/USD’s daily chart shows a bullish candlestick reversal and triangle breakout.
  • A minor pullback before a rise to key resistance at 0.6832 could be seen if Australia’s data prints below estimates.

AUD/USD confirmed a bullish breakout on Wednesday and could test the resistance at 0.6832 (June 18 low) today.

The pair closed at 0.6797 on Wednesday, validating Monday’s bullish engulfing candle. Also, Wednesday’s close confirmed an upside break of a descending triangle pattern on the daily chart.

Further, the 10- and 21-day moving averages have bottomed out and the 14-day relative strength index is reporting bullish conditions with an above-50 print. The moving average convergence divergence (MAC) histogram has also turned positive.

So, the path of least resistance appears to be on the higher side. A rise to 0.6832, however, may be preceded by a minor pullback if the Australian exports for the month of July print well below estimates. The bullish, however, would be neutralized only if the spot finds acceptance below 0.6770.

Daily chart

Trend: Bullish

Technical levels