AUD/USD Signal Today 26/05: Strong Breakout (Chart)

(MENAFN- Daily Forex) Bullish viewBuy the AUD/USD pair and set a take-profit at 6600 a stop-loss at 6400: 1-2 days viewSell the AUD/USD pair and set a take-profit at 6400 a stop-loss at 600 AUD/USD exchange rate is on the cusp of soaring to its highest level since December 2 as the US dollar index crash gained steam. It soared to a high of 0.6495 on Monday, up by almost 10% from its lowest level this year. Top Forex Brokers 1 Get Started 74% of retail CFD accounts lose money Read Review BrokerGeoLists({ type: \u0027MobileTopBrokers\u0027, id: \u0027mobile-top-5\u0027, size: SidebarBrokerListAmount, getStartedText: \u0060Get Started\u0060, readReviewText: \u0060Read Review\u0060, Logo: \u0027broker_carrousel_i\u0027, Button: \u0027broker_carrousel_n\u0027, });US dollar index crashesThe main catalyst for the ongoing AUD/USD exchange rate rise is the ongoing US dollar index crash. The index, which measures the performance of the greenback against other currencies plunged to $99.10, down by 10% from its highest point this year, meaning that it has moved into a technical correction crash continued after Moody\u0026rsquo;s downgraded the US credit rating from AAA to AA1 and warned that the US debt was growing in an unsustainable manner. It joins the other two rating agencies like S\u0026amp;P Global and Fitch that lowered their ratings before AUD/USD pair also crashed after the House of Representatives voted to approve Donald Trump\u0026rsquo;s flagship spending bill. This bill increases the US debt by between $3.8 trillion and $5 trillion in the next decade does this by introducing more tax cuts, including on tips and overtime pay. At the same time, the bill\u0026rsquo;s attempts to cut costs will not be enough to offset the rising public debt US dollar also dropped after Trump threatened a whopping 50% tariff on goods coming from the European Union. Such a move would be a big one considering the volume of goods and services the two sides deal with will be no major economic data and news from Australia this week. Instead, market participants will react to events from th United States. The most notable one will be the Federal Reserve minutes on Wednesday. The US will also publish the latest PCE and GDP data. EURUSD Chart by TradingView AUD/USD technical analysisThe daily chart shows that the AUD/USD pair rose as the US dollar index plunged to its lowest level in weeks. It has moved above the 50% Fibonacci Retracement level at 6430 pair has moved above the 50-day and 25-day Exponential Moving Averages (EMA). It has also formed an inverse head and shoulders chart pattern, a popular bullish continuation sign gains will be confirmed if the pair jumps above the upper side of the ascending channel at 0.6515. A move above that level will point to more gains, potentially to the resistance level at 0.6600.

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