- AUD/USD bulls are moving in and eye upside extension.
- The inverse head and shoulders are a bullish feature on the charts.
AUD/USD was boosted on a dovish Federal Reserve Chairman Jerome Powell on Friday. There is a preference for a pause in June from the Chair of the central bank which has outweighed any other hawkish notes from regional Fed presidents. This has enabled the Aussie to correct higher vs. the Greenback of late as the following technical analysis illustrates:
AUD/USD H4 charts
We have an inverse head and shoulders on the 4-hour charts and a correction into the 61.8% Fibonacci retracement level that leaves the bias bullish above the lows of the right-hand shoulder.
AUD/USD H1 charts
The W-formation is a compelling feature on the hourly chart whereby the reversion pattern´s neckline near a 50% mean reversion could be an attractive area for bulls to engage again.
Zooming into the bullish impulse, we can see that bulls might lean against the trendline support on a pullback.