AUD/USD has failed to make another higher high and to take out a major dynamic resistance signaling a potential reversal in the short term. Still, the outlook is bullish, so we cannot go short unless we have a strong bearish signal.

Today the USDX's rebound has pushed the greenback higher versus its rivals, but it is premature to talk about another leg higher on USD as the US Dollar Index is under massive pressure.

AUD/USD has tried without success to make a valid breakout above the median line (ml) of the ascending pitchfork. The pair is trading within an upward channel, between the median line (ml) and the lower median line (lml) of the ascending pitchfork.

Today's false breakout with great separation above the median line (ml) has suggested that AUD/USD is exhausted in the short term, but you should know that the outlook is still bullish as long the currency pair is trading above 0.7064 and above the lower median line (lml).

• AUD/USD Trading Tips

Buy another higher, a jump above the 0.7183 level or a valid breakout above the median line (ml), the next upside target is seen at the R2 (0.7287) level, or higher at the upper median line (uml).

We may have a short opportunity if the pair makes a valid breakdown below the 0.7064. This scenario will activate and validate the Double Top pattern which will send the price outside of the ascending pitchfork body, below the lower median line (lml).