Strong rally extends into fourth consecutive day and retests pivotal barriers at 0.6526/29 (converged 200/55DMA’s) which capped attack previous day.
Fresh strength offsets for now bearish signal on formation of daily inverted hammer candlestick on Wednesday, left after upside rejection and subsequent pullback.
Aussie dollar was boosted by hotter than expected Australia’s inflation and keeps bullish sentiment, however, reaction at key barriers at 0.6526/36 zone (converged 200/55DMA’sc / Fibo 61.8% of 0.6644/0.6362 bear-leg) is likely to define near-term direction.
Daily studies show overbought stochastic and 14-d momentum still in the negative territory, which may negatively impact near-term action, with repeated failure to clear pivotal barriers, to add to warnings about possible recovery stall.
On the other hand, daily cloud is above the price and twists next week that might be magnetic.
Markets await release of key US economic data today (GDP) and on Friday (PCE) expecting more details about the condition of the US economy and inflation and fresh signals about Fed’s next steps on monetary policy.
Res: 0.6536; 0.6552; 0.6571; 0.6585.
Sup: 0.6500; 0.6469; 0.6453; 0.6428.
