FxWirePro: AUD/USD pauses upside at daily cloud, outlook bullish

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.25% higher on the day at 0.7203 at around 06:00 GMT

Previous Week's High/ Low: 0.7248/ 0.7130

Previous Session's High/ Low: 0.7217/ 0.7149

Fundamental Overview:

Market sentiment turns cautiously positive as investors cheer the news of a meeting hosted by US President Joe Biden with international leaders on the potential Russian invasion of Ukraine.

On the data front, US Initial Jobless Claims, published by the Department of Labor came in at 248k, well above the market estimates and previous print of 219k and 225k respectively.

St. Louis Fed president James Bullard on Thursday reiterated his call for the Fed funds rate to be raised to 1% by July to combat stubbornly high inflation.

Cleveland Fed President Loretta Mester said the pace of hikes will need to be faster than previous cycles. Hawkish Fed speak continues to boost dollar and may limit upside in the pair.

Technical Analysis:

- AUD/USD is holding above 55-EMA and is extending gains above 200-week MA

- Close above 200-week MA will boost further upside in the pair

- Momentum is bullish, Stochs and RSI are sharply higher, RSI is above 50 mark

- Volatility is high as evidenced by wide spread Bollinger bands

Major Support and Resistance Levels:

Support - 0.7179, Resistance - 0.7236

Summary: AUD/USD finds stiff resistance at daily cloud. Technical bias is bullish. Watch out for break above for upside continuation.