AUD/USD Price Analysis: Inverted head-and-shoulders confirmed, targets 0.7440
- The AUD/USD is set to finish at fresh nine-week highs, propelled by an improved risk appetite.
- An inverted head-and-shoulders in the daily chart targets the 0.7440 area as its profit target.
- AUD/USD buyers eye a break above the 200-DMA as they aim towards 0.7440.
The AUD/USD advances for the third straight day, but retraces from the two-month high, reached at 0.7136, so far clinging above the 0.7100 mark, which could open the door for further gains. Therefore, the AUD/USD is trading at 0.7121, bolstered by a risk-on impulse, after US consumer sentiment data exceeded estimates during a week that US inflation cooled down.
AUD/USD Price Analysis: Technical outlook
During the week, the Aussie cleared the 100-day EMA at 0.7081 and now exchanges hands between the latter and the 200-day EMA at 0-7149, shifting the major’s bias to neutral-upwards. Worth noting that once the AUD/USD cleared above 0.7067, the inverted head-and-shoulders neckline confirmed the chart pattern, which has as its first profit target, 0.7440.
However, on its way up, the AUD/USD’s first resistance would be the August 11 high at 0.7136. Once cleared, the next stop would be the 200-day EMA, followed by the May 5 high at 0.7266.
AUD/USD Daily chart
AUD/USD Key Technical Levels