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AUD/USD is trading in the green and maintains a bullish outlook on the Daily chart after the failure to make another lower low. I believe that the US data will be decisive these days, the ADP Non-Farm Employment Change, ISM Manufacturing PMI, NFP, Unemployment Rate, and the Average Hourly Earnings will decide the USD's future.
The USD loses ground as the USDX has slipped lower today, only some good US figures could save the dollar drop downside. Actually, the USD current decline could be only a temporary one if the US Dollar Index resumes its short-term rebound.
AUD/USD has escaped from the ascending channel, but the failure to make another lower low, to drop, and close below the 0.6776 level has invalidated a corrective phase. The pair has broken above the upper median line (UML) of the major descending pitchfork signaling that it could resume the upwards movement.
The price is traded above the PP (0.6871) level, the next upside target is seen at the 0.7031 - 0.7063 area, only a valid breakout above this zone will validate a larger increase. A corrective phase will be confirmed only if AUD/USD makes another lower low to close below 0.6776 level.
Long from above the 0.6974, if AUD/USD makes another higher high, R1 (0.7094) and the R2 (0.7287) could be used as upward targets.
Still, a bearish engulfing today after the US data will invalidate a further increase and will signal a downside movement. A selling opportunity will be announced by another lower low, if AUD/USD drops and closes below 0.6776. Besides, a false breakout above the upper median line (UML) will suggest selling with a potential downside target at the 38.2% retracement level, near the S2 (0.6455) level.
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