AUD/USD: Firm Break above 55DMA to Signal Fresh Recovery

Technical analysis of Forex market

The Australian dollar gained traction after soft US inflation data and probing above the top of near-term congestion, limited by 55DMA (0.7720).

Fresh recovery attempts after repeated failures to clearly break into rising daily cloud (the action was contained by Fibo 38.2% of 0.6991/0.8000), were so far unsuccessful as the pair lack positive momentum for stronger advance, despite the action remains underpinned by thick daily cloud.

Close above 55DMA is seen as minimum requirement for bulls to gain firmer control and allow for further correction of 0.8000/0.7621 bear-leg.

Repeated close below 55DMA would signal extended sideways near-term mode and keep in play risk for fresh attempts to clearly break into daily cloud and extend pullback from new three-year high at 0.8007.

Res: 0.7745; 0.7769; 0.7782; 0.7800
Sup: 0.7668; 0.7619; 0.7563; 0.7542