The AUD/USD pair is back at the highs as the stock market in the United States continues to hovers around all-time highs. With no other market-moving event and with the Australian economy faring pretty well when compared to the United States one, the pair may still find bids on every dip.
However, the entire price action seen on the AUD/USD pair recently suggests a toppish formation might already be in place. The pattern looks like a rising wedge, and currently a double top appears on the bigger timeframes.
All the bullish pressure on the pair came from the U.S. stock market and the fact that Asia-Pacific has managed to contain the virus better than the advanced economies in the Western world. As such, the Aussie pairs outperformed. But as the vaccination rate in the Western world increases, the chances are that the market will reverse, especially if we see a faster than expected economic recovery in the United States
AUD/USD Technical Analysis
Bulls may want to stay on the long side as long as the price action remains between the two edges of the rising wedge. However, aggressive bears may step in once the lower edge is broken or when the pair makes a new higher high.
AUD/USD Price Forecast