The AUDUSD may be gearing for a bullish breakout of its own.
So far this week, we’ve seen several major currency pairs push higher.
That includes the EURUSD from the confluence of support at 1.0990 that I’ve mentioned several times, including in Saturday’s video.
We’ve also witnessed the NZDUSD confirm the inverse head and shoulders pattern and also take out the 0.6490 key level.
And just today, the GBPUSD is up more than 100 pips after closing above 1.2980, as I pointed out in Tuesday’s forecast video.
Of course, all of this is due to a weakening US dollar.
But that isn’t a surprise for Daily Price Action members who were aware of the October bearish engulfing month on the DXY (US dollar index).
I pointed this out in the member’s forums in mid-November.
So far, that bearish pattern is having its way with the USD.
All of this could mean the AUDUSD is the next currency pair to go on a bullish run of its own.
However, the pair still needs to clear the descending channel top that extends from the December 2018 high.
I wrote about this pattern on November 4.
We just saw the AUDUSD come off that resistance area in early November.
A daily close above that resistance level over the coming days could send the pair higher, perhaps up to 0.6930 or even 0.7030.
Just remember that as long as AUDUSD is below the channel top near 0.6880, the pair will remain vulnerable.