Daily Price Outlook

    * AUD/USD fell sharply due to worse-than-expected inflation figures but has since found support at the 0.6595 level.

    * A bullish rally is likely with a potential breakout above 0.6636, targeting the next resistance level at 0.6663.

    * Technical indicators like RSI and MACD suggest a bullish crossover, supporting long positions above 0.6600 with targets at 0.6650 and 0.6680.

Yesterday, the AUD/USD currency pair fell dramatically after the release of worse-than-expected inflation figures from the Australian economy, which triggered concerns about whether the Australian economy is growing or not. As a result, investors began short-selling the AUD/USD currency pair, causing it to enter a sell zone. However, the pair has now gained significant support at the 0.6595 level.

The closing of candles above this level, particularly the bullish engulfing candle and tweezers bottom pattern visible on the four-hour time frame, supports the likelihood of a bullish rally in the AUD/USD currency pair. On the other hand, the Australian dollar is likely to complete a 38.2% Fibonacci retracement at the 0.6636 level. A bullish breakout above this level could lead the Australian dollar towards the next resistance level of 0.6663, which is extended by the 61.8% Fibonacci retracement.

Alternatively, if the Australian dollar fails to sustain above the 0.6595 level and breaks below it, the currency has the potential to reach the immediate support level of 0.6560. However, looking at the technical indicators, the RSI has emerged from the oversold zone, and the MACD is also exhibiting a bullish crossover. Therefore, consider taking a long position above the 0.6600 level with an initial target of 0.6650 and a secondary target of 0.6680.

 AUD/USD Price Chart - Source: Tradingview

AUD/USD - Trade Idea

Entry Price – Buy Above 0.65936

Stop Loss – 0.65901

Take Profit – 0.66021

Risk to Reward – 1 : 2.5

Profit & Loss Per Standard Lot = +$850/ -$350

Profit & Loss Per Micro Lot = +$85/ -$35



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