AUD/USD
Amid the US dollar's broad weakness, the Australian dollar gained 6 pips on Wednesday. It continues to rise in today's Pacific session. The target level of 0.6780 is getting closer. However, the divergence formed on July 8 remains intact. A new high for the aussie will maintain its effect, and the price may return to 0.6730 and fall lower to 0.6690 and 0.6627.
Today, the US will publish its inflation report for June, making it a crucial day for the Australian currency. If the data turns out to be favorable, the price will consolidate above 0.6780, and the aussie may continue to rise to the target level of 0.6874. If the market cannot withstand the data, we expect the price to drop to the MACD line and the target level of 0.6627 through the intermediate levels of 0.6730 and 0.6690.
On the 4-hour chart, a complex-looking divergence is forming, which also warns that a price drop would be the most likely scenario for today's events.
