AUDUSD rose to the highest levels in almost one month on Monday, in extension of almost 0.9% daily advance on Friday and 1.5% gains last week
The pair enters the third consecutive week of strong gains, with the latest acceleration being boosted by revived risk appetite and hopes of September Fed rate cut (with renewed talks about 50 basis points cut).
Investors still need more evidence and await release of FOMC July meeting minutes and more significant speech of Fed Chair Powell in Jackson Hole symposium, which will shed more light on Fed’s next steps.
Widely expected dovish stance of the US central bank will further deflate the US dollar, though disappointing comments from Powell cannot be ruled out, and dollar would receive fresh support in such scenario.
Monday’s rally broke above Fibo barrier at 0.6692 (76.4% of 0.6798/0.6348 downtrend) and cracked pivotal resistance at 0.6701 (daily cloud top).
Firm break here to open way for push towards target at 0.6798 (2024 high, posted on July 11).
However, overbought daily studies may slow bulls, with limited dips (ideally to be contained by 55DMA at 0.6638) to provide better buying opportunities.
Res: 0.6714; 0.6750; 0.6798; 0.6839.
Sup: 0.6653; 0.6638; 0.6600; 0.6570.
