Despite a robust reaction from the US Dollar to positive US employment data, the Australian Dollar has displayed resilience, maintaining above the crucial support level of 0.6555 following a reversal from Thursday’s highs. This resilience has bolstered bullish sentiments, with focus now directed towards surpassing the resistance area above 0.6600.
March witnessed a notable increase in US Nonfarm Payrolls, exceeding expectations and concluding a strong first quarter. However, a moderation in yearly wage growth suggests a cautious outlook, keeping hopes of potential Federal Reserve cuts alive. Consequently, the USD rally has been curbed, allowing the Australian Dollar to sustain its bullish momentum.
Analysis of the weekly chart indicates the formation of a sizable bullish candle, hinting at a potential shift in the broader bearish trend. Confirmation of this trend change would entail breaching the 0.6620-0.6630 resistance area, potentially paving the way towards the 0.6670 peak. Key support levels are identified at 0.6555 and 0.6500, providing crucial markers amidst ongoing market dynamics.
