The AUD/USD pair climbed as much as 0.7122 today where it has found resistance. Now, it was trading at 0.7082 at the time of writing. After its strong rally, a temporary drop was natural. The rate came back to test and retest the near-term support levels before jumping higher again.
Today, the fundamentals drove the rate but the bias remains bullish. The Australian CPI q/q rose by 1.9% beating the 1.6% growth expected, CPI y/y jumped from 7.3% to 8.4% above the 7.6% expected, while Trimmed Mean CPI came in at 1.7% versus the 1.5%.
The BOC had a big impact on the USD earlier today. The greenback registered sharp movements in both directions. Tomorrow, the US Advance GDP is seen as a high-impact event and could be decisive. The indicator is expected to report a 2.6% growth versus the 3.2% growth in the previous reporting period. Better-than-expected US figures could boost the greenback, so the AUD/USD pair may drop.
AUD/USD Dropped On Higher Australian Inflation!
As you can see on the H1 chart, the rate found support on the ascending pitchfork's median line (ml) and on the 0.7063 and now it has turned to the upside. As long as it stays above these downsides obstacles, the pair could rebound.
The 0.7098 former high stands as an upside obstacle. It remains to see how the rate will react around it.
AUD/USD Forecast!
Staying above the median line (ml) and making a valid breakout above 0.7098 activates further growth at least to 0.7136. Taking out this resistance (historical level) signals further growth towards the upper median line (uml).
A short opportunity could appear if the rate drops and closes below the 0.7063 static support.
