AUD/USD continues to make a topside grind higher. Attention is on the 200-day moving average (DMA) 0.7567 and 0.7553, a price extension target, which are set to cap the aussie, according to Benjamin Wong, Strategist at DBS Bank.
Working along the calibration of the inverse head-and-shoulders pattern
“For the first time since mid-June, the aussie is marking time above 100-DMA 0.7407. That is a bullish signal of intent, but ultimately still requires validation of an ongoing bullish inverse head-and-shoulders pattern. The MACD signal is staying in its positive trench, supportive of this upside grind.”
“AUD/USD has sights at its 200-DMA of 0.7567. However, the price extension that targets 0.7509; 0.7553 suggests the up move from 0.7170 is likely to run out of tarmac before reaching out to 200-DMA of 0.7567. 0.7567, together with 0.7595 (weekly Ichimoku cloud fringe resistance) are likely to offer resistance of some determination.”
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