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  • The bull flag breakout seen in the AUD/USD chart indicates a resumption of the rally from the Sept. 17 low of 0.7144 and has opened the doors to 0.74 (target as per the measured move method).
  • The rally to 0.74 may not materialize if the Fed dot plot shifts higher, signaling the interest rates could rise above the neutral rate of 2.87 percent.
  • Nevertheless, the bull flag breakout can yield a test of the recent high of 0.73 in the runup to Fed.

Hourly Chart

Spot Rate: 0.7275

Daily High: 0.7278

Daily Low: 0.7245

Trend: Bullish

Resistance

R1: 0.7304 (Sept. 21 high)

R2: 0.7333 (23.6% Fib R of 0.8136/0.7085)

R3: 0.7412 (May low)

Support

S1: 0.7268 (100-hour moving average)

S2: 0.7236 (Sept. 24 low support on the hourly chart)

S3: 0.72 (psychological level)