Bank of America Merrill LyncgFX Technical Strategy Research notes that AUD/USD has rallied through a trend line connecting four prior peaks since April 2016 and closed above 0.7710 which implies that this trend line has been broken.
"Our technical heatmap shows AUD/USD is making new 20d highs and that price is in an uptrend according to the ADX and MAA indicators. It also shows the 50d is approaching a bullish cross above the 200d," BofAML adds.
The confirmation of this bullish setup, according to BofAML, is currently underway with the break into the .7800’s. Another conformation would be a break above key resistance level at 0.7836.
Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article
