Technical analysis for AUD/USD pair is showing that the price broke down on the daily chart and broke below ascending trend line on the weekly chart forming a Head and Shoulders pattern. The first target of the daily breakout is at 0.618 FIB extension around 0.7605, and it was reached, the second target is at 0.500 FIB retracement of the last bullish run at 0.7500, the third target is the 100% FIB extension at 0.7460, and break below it will send the price toward 1.272 FIB extension at 0.7355.
However, before 0.7500, we need to see a break below the previous weekly low at 0.7563, which the AUD/USD pair respected last week, and bound from it, starting a pullback on the daily chart.
Focus for the week ahead is first on 0.7760, if the price break above it, it will be an early signal for resumption of the bullish trend. The second level to watch is 0.7850, if the price break back above it, it will resume the bullish weekly and daily trend and send the price toward the previous high at 0.8007 and break above it, it will send the price toward 08135.
Review our technical analysis for AUD/USD pair for 2021 targets.