The AUD/USD pair has been on a strong rally for the fourth consecutive day, reaching pivotal barriers at 0.6526/29 where the 200/55DMA’s converge. This level had previously capped attacks the day before.
Despite a bearish signal from a daily inverted hammer candlestick formed on Wednesday, the Aussie dollar was boosted by higher than expected inflation in Australia, maintaining a bullish sentiment. However, the reaction at the key barriers at 0.6526/36 will likely determine the near-term direction.
Daily studies show overbought stochastic and negative 14-day momentum, which could impact short-term action. The daily cloud is above the price and is expected to have a magnetic effect next week.
Market participants are eagerly awaiting key US economic data releases, such as GDP today and PCE on Friday, to gain more insight into the state of the US economy, inflation, and potential signals about the Fed’s future monetary policy decisions.
Resistance levels for the AUD/USD pair are at 0.6536, 0.6552, 0.6571, and 0.6585, while support levels are at 0.6500, 0.6469, 0.6453, and 0.6428.