Technical Analysis

Technical Outlook: AUDUSD – Bullish Signal On Eventual Break Above Cloud Base

Typography

The AUDUSD pair hit new one-week high at 0.7835 on Thursday, after fresh extension of recovery rally from 0.7732 low eventually broke into daily cloud.

Base of thick daily cloud limited upside attempts in past two days.

Aussie was boosted by weaker US dollar after Fed minutes and stronger copper price which hit one-month high today.

Close above daily cloud base would be bullish signal for further advance and test of next strong resistance at 0.7874 (Fibo 38.2% of 0.8102/0.7732 downleg / 04 Oct lower top).

The pair is currently riding on fourth, corrective wave of five-wave sequence from 0.8124 which should ideally end under 0.7900 (length of the wave 2) before broader bears resume.

Stronger bullish signal could be expected on extension and close above daily cloud top (0.7929), reinforced by daily Kijun-sen.

Res: 0.7835, 0.7874, 0.7900, 0.7929
Sup: 0.7818, 0.7803, 0.7782, 0.7770