AUDUSD preparing for resistance

The Australian dollar took another step higher as interest in the greenback continued to falter. Price action remains limited to the upside below 0.6600. However, the recent 100 pip jump has given hope that the bull rally will continue. However, the RSI’s double spike towards the overbought zone has attracted some selling interest. 0.6535 is the closest hurdle to test a decline, and bears must break 0.6500 before turning short-term sentiment around. A push above the fresh resistance of 0.6580 would extend the rally to the recent consolidation at 0.6615.

USDCHF stuck in a triangle

The US dollar consolidated its gains as the FOMC repeated its dovish stance. Following a bounce off 0.8750, a move towards 0.8865 halted further progression. Prices now range in a symmetrical triangle as the market awaits a confirmed break. 0.8740 at the bottom of the latest rally is a key level to keep the momentum intact. A move above 0.8885 would send the greenback to the daily resistance at 0.8945, paving the way for a full-fledged bull rally in the medium term. Failing that, a bearish breakout would trigger a retest of 0.8600.

US 30 feeling the pressure

The Dow Jones 30 steadies as traders await the next round of economic data. A long lower wick in the supply zone near 38000 suggests rejection after the index failed to drop lower. A move above the recent swing high of 38700 could test another record high in the near term. A rising trendline has supported the rally in the past two months and is a significant level to keep the trajectory higher. Its breach at 38900 could trigger a move past 39000 unless a correction begins.

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