AUDUSD holds firm tone on Wednesday and attempts to break through key barriers at 0.6508/22 zone (Fibo 38.2% of 0.6894/0.6270 / daily cloud top/ceiling of a multi-week range), in extension of Tuesday’s 2% rally.
Aussie dollar benefited from strong drop of the US dollar, sparked by lower than expected inflation in October, which boosted signals that Fed’s tightening cycle is likely at its end.
Bullish daily studies contribute to positive near-term outlook, with firm break of pivotal barriers to confirm a higher base at 0.6280 zone and expose net targets at 0.6582/97 (50% retracement/200DMA).
Repeated daily close above 100DMA (0.6490) to keep bulls firmly in play, though some price adjustment with deeper dips cannot be ruled out in coming sessions.
Res: 0.6522; 0.6582; 0.6597; 0.6616.
Sup: 0.6490; 0.6440; 0.6417; 0.6394.
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