AUDUSD is showing signs of a possible big degree reversal to the upside, so we pay close attention. A possible double bottom at 0.7150 and a higher low relative to the 2015 low at 0.6850, creates a setup that could push this pair back towards 0.83.
AUD/USD is in a short-term bearish trend and despite the bounce from 0.7150 trend remains bearish. Resistance is at 0.7350 and if this level is broken we should expect price to move towards the Ichimoku cloud resistance at 0.7450.
On a weekly basis, I will be very optimistic if price manages to break above the Ichimoku cloud. A break above the cloud will be a bullish sign that could push price towards the 38% Fibonacci retracement at least near 0.8350 not a move to ignore. The upside potential is very big and a break above 0.7730 will increase the chances of this scenario coming true.
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