- AUD/USD is poised to finish at fresh nine-week highs, buoyed by improved risk appetite.
- On the daily chart, an inverted head and shoulders points to the 0.7440 area as a profit target.
- AUD/USD buyers are looking for a break above the 200 DMA with a target of 0.7440.
The AUD/USD advances for the third day in a row, but pulls back from a two-month high hit at 0.7136, clinging to 0.7100 so far, which could open the door for further gains. AUD/USD is therefore trading at 0.7121, bolstered by a boost in risk appetite, after data on US consumer sentiment beat estimates during a week in which US inflation USA got cold.
AUD/USD Price Analysis: Technical Outlook
During the week, the Aussie broke above the 100-day EMA at 0.7081 and is now trading between the latter and the 200-day EMA at 0.7149, which changes the bias of the major currency to neutral to the upside. It is worth noting that once AUD/USD broke above 0.7067, the inverted head and shoulders neckline confirmed the chart pattern with 0.7440 as the first profit target.
However, on its way to the upside, AUD/USD’s first resistance would be the 11th Aug high at 0.7136. Once broken, the next stop would be the 200 day EMA, followed by the May 5 high at 0.7266.
AUD/USD daily chart
AUD/USD Key Technical Levels
Source: Fx Street
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