The AUD/USD has been a top performer over the course of the week and we are now reaching the point where the real test is on.

The AUD has been in a downward channel for the best part of 2018. The downtrend has been helped by a strong USD as the US economy continues to improve.

Meanwhile, the Aussie economy isn’t all that flash and the next round of rate hikes aren’t scheduled for another 12-24 months. If at all.

That means we are now back testing the top end of the channel. A weak USD that fell beneath support yesterday has helped push us right back into overhead resistance.

Aussie Outlook

The AUD/USD is now focused on the major level at 0.7300.

There’s no doubt we are going to get some selling here. Above that point, there is a high at 0.7350. If we break and hold that price then we are officially on track for a turnaround. I’d then like to see a higher low in place. Probably around the 0.7200 level.

That’s all just theory for now. As I’m looking for sellers to defend 0.7300 today. And I wouldn’t be surprised to see the USD bounce on Friday.