The currency pair is growing inside the bullish channel, moving above the Ichimoku Cloud, which suggests the prevalence of an uptrend. A test of the upper border of the Cloud is expected at 0.6695, followed by growth to 0.6945. Growth will be additionally supporter by a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud under 0.6535, which will entail further falling to 0.6445.

Meanwhile, the USD Index (DXY) is still in the hangover of ‘less-hawkish’ cues from the Federal Open Market Committee (FOMC) minutes. The US Dollar is hovering below the critical hurdle of 106.00 amid the risk appetite theme.

On a daily scale, the Aussie asset has confidently established above the horizontal support plotted near July 14 low around 0.6700. The next hurdle for the Aussie asset is the 200-period Exponential Moving Average (EMA) at 0.6847, which has remained a major ceiling.

The 20-period EMA at 0.6616 is scaling higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is focusing on shifting into the bullish range of 60.00-80.00, which will trigger a bullish momentum.

Going forward, a break above Thursday’s high at 0.6778 will extend the three-day winning streak, which will drive the asset toward the round-level resistance at 0.6800, followed by the 200-EMA at 0.6847.

On the flip side, the Australian Dollar could lose strength if the Aussie asset drops below Monday’s low at 0.6585. This will drag the major towards October 4 high at 0.6548 and November 2 high at 0.6493.

A Bullish Opportunity Above EMA200 After Pullback

farhan fazal

Nov 26 2022

Pending

Published 74d ago

0.69295

Current price

0.65723

Entry price