May 25, 2018
By looking at the daily chart we can see that bulls are preparing to surge higher as bullish breakout of downtrend channel has been occurred. Earlier trend was down and bears were moving down with the downtrend channel but now we have seen some trend reversal signal as a valid breakout of downtrend line along with channel which indicates that bulls are back in the game and they are fighting with the bears.
On fundamental note, AUD uplifted during the whole day as the US Dollar moved down to south side as continued wrath from Trump Administration. Today Fed’s powell speech is about to come and Durable goods order of US is expected to reveal today which will open the further direction for US Dollar.
By applying the Fibonacci retracement line from 0.8121 to 0.7427 level we may see that pair will retrace at least 38.2% retracement level which exist on 0.7690.From depth technical analysis we can observe that the current swing on the daily chart is forming like a rounding bottom pattern which indicates that pair will test 0.7790 level in very short term. Our daily to weekly bias remains bullish as long as 0.7450 level remains undamaged.
Pair is trading above all the major and minor EMA lines which is providing bullish signal. A bullish crossover on MACD indicator is providing strength to bulls and courage to buyers. RSI indicator is also lying above the 50 line which means there is no risk to have a long position. The 0.7650 level is key resistance level followed by 0.7750 whereas 0.7480 is key support level followed by 0.7380 level.