Australian Dollar’s rally from the 0.6385 area, capped at 0.6600. (Pivot Orderbook analysis)

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• Australian Dollar’s rally from the 0.6385 area, capped at 0.6600.
• The pair remains 2.2% up on the day, consolidating above 0.6540 previous resistance level.
• Greenback’s weakness after US CPI data has boosted the AUD.

The pair currently trades last at 0.6577.

The previous day high was 0.6522 while the previous day low was 0.6415. The daily 38.2% Fib levels comes at 0.6456, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6481, expected to provide support.

The Australian Dollar’s rally from session lows at 0.6385 has been capped at a fresh six-week high a few pips shy of 0.6600, although the pair remains steady in the upper range of the 0.6500s.

On the daily chart, the pair moves 2,2% above the opening levels. The Aussie surged on Thursday’s early US session, following the release of US CPI data to break the top of the last six weeks’ trading range, at 0.6545.

US inflation slowed down beyond expectations in October, which sent US Treasury yields and the Greenback lower, and boosted equity markets on hopes that the Federal Reserve might shift to softer interest rate hikes over the next months.

The overall CPI increased at a 0.4% pace, unchanged from September, against market expectations of an acceleration to 0.6%. The Core inflation, the Fed’s preferred inflation gauge, slowed down to 0.3% from 0.6% over the previous month.

Furthermore, US weekly jobless claims showed an increment of 225,000 claims in the week of November 4, up from 228,000 claims over the previous week and above the market expectations of 220,000. These figures suggest a certain loosening in the labor market and provide additional reasons to expect some easing on the Fed’s tightening plan.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.6577 at the time of writing. Pair opened at 0.6424 and is trading with a change of 2.38 % .

The pair is trading above its 20 Daily moving average @ 0.637, above its 50 Daily moving average @ 0.6507 , below its 100 Daily moving average @ 0.6709 and below its 200 Daily moving average @ 0.6963

The previous day high was 0.6522 while the previous day low was 0.6415. The daily 38.2% Fib levels comes at 0.6456, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6481, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6385, 0.6346, 0.6278
• Pivot resistance is noted at 0.6493, 0.6561, 0.6601

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