AUDUSD has made an impressive rally since bouncing at the end of September from a low of 0.6935. The pair reached a seven-week high of 0.7346 early on Monday. Prices are now testing the top of the daily Ichimoku cloud. A decisive close above the cloud would strengthen the upside momentum.
The intra-day bias is bullish as the RSI is positive and rising. The tenkan-sen line has made a bullish crossover above the kijun-sen line. For a more sustained bullish move prices would need to clear the 38.2% Fibonacci retracement level (0.7385) of the downleg from 0.8162 to 0.6906. Otherwise a fall back below 0.7278 would bring the market bias back to neutral and back to consolidation after the recent downtrend. Looking at the bigger picture, prices have been in a downtrend since 0.8162 to 0.6906.
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