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FxWirePro: AUD/USD tests 0.74 handle, extends gains above daily cloud

AUD/USD chart - Trading View 

AUD/USD hits 0.74 handle early in the Asian session, outlook is strongly bullish. 

The pair slips lower from session highs at 0.7406 and was trading 0.28% higher on the day at 0.7398 at around 07:45 GMT.

Price action has broken above 'Symmetric Triangle' pattern and daily cloud raising scope for further upside.

The pair built on the previous day's post-US CPI positive move and gained some follow-through traction.

US dollar pulls back from one-year high after inflation data overnight showed prices rose solidly last month.

US consumer price index rose 0.4% last month versus a 0.3% rise expected. Year-over-year, the CPI increased 5.4%, up from 5.3% in August. Core CPI climbed 0.2% last month versus 0.1% in August.

A surge in energy prices has added to inflation concerns and stoked bets the Fed may need to act faster than previously projected.

AUD/USD trades with a bullish technical bias. Momentum is bullish and volatility is high. Scope for test of 38.2% Fib at 0.7450.

The pair finds strong resistance at 110-EMA at 0.7406, watchout for decisive break above for upside continuation. 

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