AUD/USD maintains a bullish outlook after signaling that the downside is limited. It entered a temporary correction which ended around 0.7453 level. Now, it is trading at 0.7505 below 0.7525 today's high.
It remains to be seen how the AUD/USD pair will react as the US dollar index has erased the latest drops. So. DXY's rally could force the greenback to appreciate again. Technically, the price action develops a potential continuation pattern. Activating this formation could announce more gains.
AUD/USD decreased a little after reaching the 0.7525 daily high also because the US CB Consumer Confidence was reported at 113.8 points far above 108.4 expected and above 109.8 in the previous reporting period. The New Home Sales increased from 702K to 800K beating the 755K estimate, while the Richmond Manufacturing Index was reported at 12 points above 4 points estimated.
Tomorrow morning, the Australian CPI could bring high volatility and strong moves. The US is to release important economic data.
AUD/USD Triangle Formation!
As you can see on the H4 chart, the AUD/USD pair failed to stabilize under the 0.7478 key level and now it has developed a potential triangle. From the technical point of view, as long as it stays above 0.7478 and above the weekly pivot of 0.7463, the bias remains bullish.
Making a valid breakout above the immediate downtrend line could activate an upside continuation.
AUD/USD Prediction!
Consolidation above the 0.7478 and a valid breakout through the triangle's resistance could signal potential rise and could bring great long opportunities.
The material has been provided by InstaForex Company - www.instaforex.com