NAB discusses AUD/USD technical outlook, and flags a scope for a bullish squeeze in the near-term, especially if the pair manages to close the week above 0.7697.
"Intra-week losses have now been fully erased, establishing the potential for a positive weekly reversal pattern upon a weekly close at/above 0.6797. ST momentum has shifted to a positive bias. MT momentum bias is negative, however failure to confirm the recent low in price presents positive risk.," NAB notes.
"Our multi-week outlook is highly dependent on the weekly close. Above 0.7697 we will look for a further short squeeze in the coming weeks," NAB adds.