The AUDUSD is testing is testing a trend line I first mentioned on October 11th.
The level extends from the year-to-date high and has rejected the pair on several occasions.
I also talked about the 0.7020 support over the weekend.
Notice how AUDUSD never closed below that 0.7020 area, which meant it was always intact as support.
Looking at the weekly time frame, you can see just how significant 0.7020 has been since 2018.
If the Australian dollar can climb above this trend line near 0.7130, it could signal the start of the second leg higher.
Just keep in mind that it’s going to take a daily close at 5 pm EST (using the New York close charts I use) to confirm the breakout.
Also, remember that today is the US elections.
There’s a decent chance that the decision takes longer this time due to any COVID-related delays.
We’ll see, but either way, this presidential election will shake things up for most markets, including the AUDUSD.
As for the technicals, everything hinges on 0.7020 and 0.7130.
A daily close above 0.7130 would expose 0.7230 and perhaps 0.7400.
Alternatively, a daily close below 0.7020 would signal weakness and open the door to 0.6830.