Last Friday, I discussed how AUDUSD was likely to extend its rally this week, given the close above 0.7030.
That’s a significant horizontal level for the pair.
Notice how 0.7030 has served as a pivot for AUDUSD since October 2018.
Last week’s close above 0.7030 was the first since April of last year.
However, as you can see, we never did get a retest of that area as new support.
Buyers decided to take on the 0.7160 resistance area first.
As I wrote last week, a daily close above 0.7160 would expose 0.7320.
That said, I would put that level closer to 0.7180 just to be sure.
That’s the level buyers need to break, in my opinion.
If they do, we could see AUDUSD surge to 0.7320 and perhaps 0.7480.
A close below 0.7030 is the only thing that would negate my bullish outlook.
Until then, I favor buying dips into support and bullish breakouts from consolidation.
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