AUD/USD outlook: Consolidation likely to precede fresh push higher

AUD/USD

AUDUSD is holding within a near-term sideways mode after larger rally stalled at strong resistance zone at 0.6582/87 (50% of 0.6894/0.6270 / 200DMA) but subsequent weakness was short-lived as Aussie dollar received fresh support from hawkish RBA chief’s comments.

Long upper shadow on Tuesday’s daily candle and long tail on Wednesday’s signal indecision and signal that bulls may take a breather before resuming.

Fundamentals work in favor of Aussie dollar as RBA keeps hawkish stance on monetary policy while Fed shifted to more cautious approach, with growing signals that the central bank is likely done with raising interest rates.

Overall bullish daily studies are weighed by overbought conditions and fading positive momentum which contributes to signals of consolidation.

Dips should hold above broken Fibo 38.2% barrier (0.6508) to offer better buying opportunities for fresh push through 0.6582/87 pivots and acceleration towards 0.6656 (Fibo 61.8% of 0.6894/0.6270).

Res: 0.6582; 0.6616; 0.6656; 0.6700.
Sup: 0.6527; 0.6508; 0.6484; 0.6450.

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