Like NZD/USD, AUD/USD played by the book this week and gently climbed to the upside, reaching heights of 0.7620 on Thurs. After closing above 0.7500 during the week prior and as price is now well clear of the descending daily and weekly trend lines, we had little doubt that the pair was on its way to achieving 0.7670 in the near-future. After last week, we still believe to be the case.
For the upcoming week, like NZD/USD, we will be looking at the interaction of the pair with the ascending daily trend line that has held prices up since early November. Any short pullbacks to the trend line will likely be bought into. Only a close below the trend line on the daily timeframe would indicate to us that AUD/USD is on for a deeper pullback in the overall bullish trend.
Even if the ascending daily trend line breaks there is then a new ascending weekly trend line to catch prices should they fall further, but at the current time it is looking unlikely this will be called upon.
For the upcoming week, like NZD/USD, we will be looking at the interaction of the pair with the ascending daily trend line that has held prices up since early November. Any short pullbacks to the trend line will likely be bought into. Only a close below the trend line on the daily timeframe would indicate to us that AUD/USD is on for a deeper pullback in the overall bullish trend.
Even if the ascending daily trend line breaks there is then a new ascending weekly trend line to catch prices should they fall further, but at the current time it is looking unlikely this will be called upon.