AUD/USD Price Forecast: Strives To Hold 0.6500 For Fresh Rally
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The AUD/USD pair surrenders significant intraday gains after posting a fresh six-month high near 0.6540 on Monday. The Aussie pair gives back a majority of gains as the US Dollar (USD) recoups its early losses. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, recovers to near 99.00 from its monthly low of 98.70 posted earlier in the day.
The Australian Dollar (AUD) performs strongly as the market sentiment turns favorable for risk-perceived assets after United States (US) President Donald Trump suspended proposed 50% tariffs on the European Union (EU) until July 9.
Trump postponed proposed EU tariffs after the old continent urged Washington for some time to reach a good deal.
This week, investors will pay close attention to the inflation from both Australia and the United States (US), which will be published on Wednesday and Friday, respectively.
AUD/USD delivers a breakout of the Symmetrical Triangle formation formed on a daily timeframe. A breakout of the above-mentioned chart pattern results in a volatility expansion, which leads to wider ticks on the upside and an increase in volume.
The 20-day Exponential Moving Average (EMA) slopes higher around 0.6426, indicating a strong uptrend.
The 14-day Relative Strength Index (RSI) strives to break above 60.00. Bulls would come into action if the RSI breaks above the 60.00 level.
More upside would appear towards the November 25 high of 0.6550 and the round-level resistance of 0.6600 if the pair if the pair breaks above the May 7 high of 0.6515.
On the flip side, a downside move below the March 4 low of 0.6187 will expose it towards the February low of 0.6087, followed by the psychological support of 0.6000.
AUD/USD daily chart
(Click on image to enlarge)
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