AUD/USD Technical Analysis: Eroding key trendline hurdle on yuan recovery
Our preference: long positions above 0.7035 with targets at 0.7440 & 0.7570 in extension.Alternative scenario: below 0.7035 look for further downside with 0.6960 & 0.6825 as targets.
01 .The recovery in Chinese yuan has likely put a bid under most majors, including the Aussie dollar, lifting the AUD/USD pair to 0.72.
02 .The AUD/USD is currently chipping away at the trendline from Nov. 8 highs, as seen in the hourly chart.
03 . A convincing move above that trendline would mean that the pullback from the recent high of 0.7302 has ended and would open up upside toward 0.73.
04 . A drop below 0.7164 would signal a resumption of the sell-off from the Nov. 8 high of 0.7302.