NAB discusses AUD/USD technical outlook and flags a scope for an extended short squeeze higher.
"Series of lower highs / lower lows (MT downtrend structure) was broken this week with the break of the last correction high at 0.7160.
2018 downtrend line and 50-day MA also broken in the 0.7150/70 range. Breakouts confirm an evolving multi-week correction and target a 38.2% retracement towards 0.7447.
A weekly close above 0.7213 will complete a bullish multi-week candle pattern (tower bottom) and add weight to the interim uptrend bias," NAB argues.