The AUD/USD pair has turned technically bullish for the first-time since January 2020, after buyers broke the 0.6650 technical barrier.
AUD/USD analysis shows that a rally towards the 0.7000 level appears possible over the medium-term.
AUD/USD medium-term price trend
The Australian dollar has continued its major upside recovery over recent days, with the pair now trading 1,300 points above its 2020 price low.
AUD/USD technical analysis shows that bulls may be preparing to attack towards the 0.7000 level.
The daily time frame shows that a huge inverted head and shoulders pattern will form if price reaches the 0.7000 resistance level.
If the pattern does form, then the pattern will hold an upside projection of around 1,400 points.
It is possible that a correction back towards the 0.6650 level may take place if price reaches the 0.7000 level.
AUD/USD short-term price trend
AUD/USD technical analysis highlights that the pair is bullish over the short term while price trades above the 0.6630 level.
The four-hour time frame shows that a rising wedge pattern has formed. These patterns are typically considered to be bullish reversal patterns.
Technical analysis shows that price could rally towards the top of the wedge pattern, around the 0.6920 area.
It is noteworthy that substantial amounts of bearish price divergence has formed during the recent advance.
The bearish price divergence currently extends down towards the 0.6250 support region.
AUD/USD technical summary
AUD/USD analysis points to more upside towards the 0.7000 level over the medium-term. A large reversal pattern will form if price reaches the 0.7000 level.