FxWirePro: AUD/USD gaining momentum for a move towards 0.6600 level

• The AUD/USD climbed on Thursday as easing tensions in the Middle East boosted risk appetite, prompting investors to move into higher-yielding assets like the Australian dollar.

• Global markets found relief this week after a ceasefire between Israel and Iran eased fears of potential disruptions to the global oil supply.

• Markets have grown increasingly confident that the Reserve Bank of Australia (RBA) will begin easing monetary policy as early as next month, with current pricing indicating an 80% probability of a 25 basis point rate cut in July.

• Traders are forecasting a cumulative 73 basis points of rate cuts by the end of the year, reflecting expectations that the RBA will need to act more aggressively to support growth and steer inflation back within its target range.

•  Immediate resistance is located at 0.6542(23.6%fib), any close above will push the pair towards 0.6556(Higher BB).

•  Support is seen at 0.6493(SMA20) and break below could take the pair towards 0.6426(38.2%fib).

 Recommendation: Good to buy  around 0.6500 with stop loss of 0.6490 and target price of 0.6600