The jump higher in the pair owes much to the dollar plummeting in trading yesterday but we work with what is given to us. And in the case of AUD/USD, it now presents the opportunity to catch a break above the 0.6500 mark and onwards to a stronger technical breakout. The figure level had previously helped to stall the upside move but now we are looking to push past that as well as the 100-day moving average (red line) at 0.6490:
Those are two massive technical hurdles that are falling for the dollar and sets the platform for the aussie to climb much more than what we have seen so far this week.
The next technical stop looks to be the 200-day moving average (blue line) at 0.6597 before we start to look to the bigger picture view in AUD/USD. The key weekly moving averages are then seen at 0.6805 (100-week) and 0.7008 (200-week) next.
The stage is set for a potential further drop in the dollar in the near-term and this is one of those pillars that need to align for that to happen, alongside EUR/USD as pointed out here earlier. And the next push today could come right after the US PPI and retail sales data, so keep your eyes peeled for that later on.
