AUD/USD technical analysis: At session highs, further gains likely

• AUD/USD looks north with the hourly chart reporting a bullish continuation pattern.
• Risk reset, as indicated by the uptick in the S&P 500 futures, could add to the bullish tone around the AUD.

AUD/USD is currently trading at 0.6791, the highest point of the day, and could extend the gains toward 0.6850.

This is because the hourly chart is reporting a pennant breakout, a bullish continuation pattern. The breakout has opened the doors for 0.6835 (target as per the measured move method). A violation there would expose the 21-day moving average at 0.6850.

Supporting the bullish technical setup are the signs of risk reset in the financial markets. Notably, the futures on the S&P 500, a benchmark for riskier assets across the globe, are currently reporting a 0.57% gain.

The outlook would turn bearish if the pair drops below 0.6765, invalidating the higher lows setup on the hourly chart.

Hourly chart

Trend: Bullish

Pivot points