A test of an inverted H&S breakout with less volatility will present an optimal buying opportunity. (Pivot Orderbook analysis)

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• A test of an inverted H&S breakout with less volatility will present an optimal buying opportunity.
• Cheerful market mood post softer US October’s inflation report has strengthened the Aussie bulls.
• The 50-and 200-EMAs are on the verge of delivering a golden cross.

The pair currently trades last at 0.6592.

The previous day high was 0.662 while the previous day low was 0.6387. The daily 38.2% Fib levels comes at 0.6531, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6476, expected to provide support.

The AUDUSD pair has witnessed modest exhaustion in the upside momentum after printing a fresh six-week high of 0.6632. An upside bias for the asset is still solid as the market mood is jubilant after a noteworthy decline in the US inflation data.

Bets for a fifth consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed) are vanishing and the US dollar index (DXY) and yields on US government bonds are getting punished. Meanwhile, trading activity in the US could be on reduced volume as US markets will remain closed on Friday on account of Veterans Day.

On a four-hour scale, the asset has delivered a breakout of the Inverted Head and Shoulder chart pattern that signals a bullish reversal after a prolonged consolidation. The neckline of the aforementioned chart pattern is plotted from October 4 high at 0.6548.

The 50-and 200-period Exponential Moving Averages (EMAs) are on the verge of delivering a golden cross, which will further strengthen the antipodean.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

Going forward, a test of the Inverted H&S neckline at 0.6548 will trigger a bargain buy and will drive the asset toward Thursday’s high at 0.6632, followed by the round-level resistance at 0.6700.

Alternatively, a decline below Thursday’s low at 0.6386 will drag the asset toward October 14 high at 0.6347. A downside break of October 14 high will expose the asset for more downside toward November 3 low at 0.6272.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.6592 at the time of writing. Pair opened at 0.6616 and is trading with a change of -0.36 % .

The pair is trading above its 20 Daily moving average @ 0.6386, above its 50 Daily moving average @ 0.6504 , below its 100 Daily moving average @ 0.6706 and below its 200 Daily moving average @ 0.696

The previous day high was 0.662 while the previous day low was 0.6387. The daily 38.2% Fib levels comes at 0.6531, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6476, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6462, 0.6307, 0.6228
• Pivot resistance is noted at 0.6696, 0.6775, 0.6929

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