AUD/USD Price Analysis: Inverted Head and Shoulder Pattern Confirmed, Targets 0.7440

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  • 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

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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.

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AUD/USD daily chart

AUD/USD Key Technical Levels

AUD/USD

Panorama
Last Price Today 0.7121
Today’s Daily Change 0.0015
Today’s Daily Change % 0.21
Today’s Daily Opening 0.7106
Trends
20 Daily SMA 0.6951
50 Daily SMA 0.6942
100 Daily SMA 0.7088
200 Daily SMA 0.7153
levels
Previous Daily High 0.7137
Previous Daily Minimum 0.6963
Previous Maximum Weekly 0.7048
Previous Weekly Minimum 0.6869
Monthly Prior Maximum 0.7033
Previous Monthly Minimum 0.668
Daily Fibonacci 38.2% 0.707
Daily Fibonacci 61.8% 0.7029
Daily Pivot Point S1 0.7
Daily Pivot Point S2 0.6894
Daily Pivot Point S3 0.6826
Daily Pivot Point R1 0.7174
Daily Pivot Point R2 0.7243
Daily Pivot Point R3 0.7348

Source: Fx Street

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