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Aussie came nicely to the downside in the last few months with clearly three waves down from the highs, so apparently this was a correction, a completed one, after a very nice rebound from the 0.6420 area, from where we can now see impulsive move that broke the trendline and even coming back above the previous triangle swing resistance. This certainly looks like a turning point, and ideally it will take us even higher after some new retracement, so watch out for more upside while the market trades above the November lows.
 

AUDUSD 4H Chart

Even on the daily chart, you can clearly see some very choppy and messy price action for the last few months, so sooner or later we think that bulls are ready to hit new highs, and maybe we are now at the beginning of this third wave up; C or 3.
 

AUDUSD Daily Chart

The reason why Aussie (AUDUSD) can resume its recovery is due to bullish equity markets and the current risk-on environment. As shown by its strong positive correlation with the S&P 500, the Australian dollar tends to benefit when stocks are moving higher. With the S&P 500 pushing back toward all-time highs, AUDUSD could easily extend its rally. Just be mindful of short-term intraday pullbacks along the way.
 

SP500 vs. AUDUSD 

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