AUD/USD - AUD/USD: The Sharp Bullish Run Drove the Price to Our Suggested Target at 0 - 07/20/2017 (GMT)

The Australian dollar had another aggressive rally on Wednesday versus the U.S. dollar and managed to reach a new 2-year high at 0.7988 before the sharp sell-off. The AUD/USD pair is posting the second green month in a row following the pullback on the ascending trend line near 0.7330. The price touched and surpassed our recommended target at 0.7980 (see technical analysis here: AUD/USD Edged Gradually Higher - Soared 1.4% So Far) almost 100 pips gains, and is creating a significant bullish trend.

Since last week, the commodity currency pair added more than 3% at its performance and challenged the 200-month SMA as well as the 200-week SMA. So, our expectation is a downward correction until the 0.7835 support handle. From a technical point of view, the RSI indicator is following the overbought zone but is pointing south signaling for a retracement to the downside. Also, the stochastic oscillator created a bearish crossover within its moving averages confirming the recent fall in price.