NAB discusses AUD/USD technical outlook and notes that bullish triggers are re-emerging on a weekly and a monthly closes.
"The short squeeze we identified last week has emerged with force. Wednesday’s close above the 50-day MA (0.6967) confirmed that the bullish bias needs more time to play out.
A weekly close above 0.7006 will negate the previous bearish MT bias. A monthly close above 0.7047 will complete a bullish MT/LT reversal pattern implying a sustainable upswing. Multiple bullish ST momentum triggers initiated this rally. Bullish MT momentum triggers are now emerging, confirming a sustainable upswing," NAB notes.
"We anticipate a further short squeeze towards MT trend resistance at 0.7060/80. The weekly / monthly close will be crucial in resetting our one and three month targets. We anticipate an upward revision," NAB adds.