AUD/USD outlook: Bearish bias below the base of thick daily cloud

AUD/USD

AUDUSD remains under pressure as the price action was capped by the base of thick daily cloud (currently at 0.6531) in past few sessions, while a batch on daily MA’s in bearish configuration, weighs heavily.

Bears pressure a higher base at 0.6500 zone (also Fibo 76.4% of 0.6442/0.6667 ascend) which recently contained a number of attacks and marks significant support, break of which would expose key short-term support at 0.6442 (Feb 13 low).

Technical studies are in full bearish setup on daily chart and favor further weakness however, fundamentals may again play a key role in determining near-term direction.

The dollar was boosted lately by doubts about the start and pace of rate cuts after disappointing US inflation data for the last month, though it seems that the Fed would start easing its monetary policy in June and deliver three cuts this year.

Markets await release of US weekly jobless claims and PCE inflation report, which is expected to give more details about inflation and Fed’s action.

Solid barriers at 0.6550/60 zone, provided by converged daily MA’s, mark significant resistance, with firm break above these levels to dent bears or to confirm negative structure if the price fails to break higher.

Res: 0.6555; 0.6570; 0.6606; 0.6634.
Sup: 0.6510; 0.6495; 0.6477; 0.6442.

Interested in AUD/USD technicals? Check out the key levels