FxWirePro: AUD/USD comatose at cloud top, outlook bullish as long as pair holds above daily cloud

AUD/USD chart - Trading View 

AUD/USD was trading largely unchanged at 0.7791 at around 06:15 GMT, hovers around daily cloud top.

The major has been tracking sideways at 110-month EMA from the past few months, decisive break above will fuel further gains.

RSI holds above the 50 mark, momentum indicators are bullishly aligned. MACD and ADX support upside in the pair. 

US central bank maintained status-quo on short term interest rates and a bond-buying program at its policy meet on Wednesday.

Federal Reserve chair Jerome Powell pushed back tapering expectations while defending easy money policy.

Hopes of extended monetary easing and Biden’s mammoth fiscal stimulus are likely to propel the inflation further towards the north.

US inflation expectations jump to multi-year high. Reflation fears could derail the US dollar’s much-awaited recovery. 

AUD/USD trades with a bullish bias on the monthly charts. The pair is on track to close the month above 110-EMA resistance.

Scope for test of 200-month MA at 0.8259. Bullish invalidation only below daily cloud.