- 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
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Spot Rate: 0.7275
Daily High: 0.7278
Daily Low: 0.7245
Trend: Bullish
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)
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