AUD/USD Breakout

Price has been in a long sideways consolidation after hitting a low at 0.6678. During the correction, price managed to stay above the Fibonacci 62% correction point of the rally from 0.6678 to 0.6820. Price is currently breaking out of a downtrend line. Price could be heading higher to 0.6860 in the next 48 hours.

Stochastic is rising and has not yet reached the overbought extreme. The fast line in the Stochastic indicator is also rising and above the slow line. MACD is turning up from a flat position. Momentum indicators are supportive of a price advance.

For short term trader, stop can be placed at 0.6765 but for longer term trader and for a safer stop, 0.6740 would be a better location.

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