AUD/USD Bullish End To Bullish Week

Price action on AUD/USD, a daily chart of which is shown, is closing out a decisively bullish week that saw the pair break cleanly above 0.7400 and then follow-through all the way up to a high above 0.7600. As a result, a new overall uptrend in the pair has tentatively been confirmed. In the process, price has formed a steep short-term uptrend support line that, with continued bullish momentum, currently appears to be targeting key resistance in the 0.7800 region. The steepness of this week’s bullish run, however, warns of an impending momentum exhaustion and therefore, a potential bearish retracement. In this event, the noted steep uptrend line could readily be broken to the downside, in which case the 0.7400 region should serve as significant support for the pair.

(Chart courtesy of FX Solutions’ FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)

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