The AUDUSD currency pair gained 1.57% on Tuesday, May 13, on the back of lower US Consumer Price Index figures year-on-year, closing at 0.64696. In the subsequent daily candle, the US Dollar strengthened against the Australian Dollar, retracing almost half of the previous rise and rallying towards the 0.64000 level. This level has been acting as a resistance to the pair's growth since December 2024, which the asset has not yet managed to confidently overcome. However, previous daily candlesticks have closed above this level. There is a high probability of the price moving towards 0.65000.
The daily Relative Strength Index (RSI) declined to 53 from the overbought zone in the previous few trading days, signaling a potential shift to a bearish trend or neutral trader positioning on the currency pair. The 4-hour RSI is at 63 and indicates a strong uptrend. The hourly RSI jumped sharply to 54 from the oversold zone, suggesting traders are in a buying mood in the near term.
The Moving Average Convergence Divergence (MACD) indicator on the daily timeframe remains in the positive zone above the zero level, slightly weakening the buying momentum. The 4-hour MACD is also in the positive zone but is gradually descending towards the zero level. The hourly MACD crossed the zero line and barely entered the negative zone, providing a slight sell signal in the short term.
The US Dollar Index is struggling as inflation data came in below forecasts. The Consumer Price Index (CPI) rose 2.3% year-over-year, falling short of the expected 2.4%.
The Australian Dollar rose after unexpectedly strong employment figures strengthened the case against the Reserve Bank of Australia cutting rates rapidly in the coming months.
Trading strategy option: buy at the current price with Take Profit at 0.64900 and Stop Loss at 0.63800.
This content is for informational purposes only and is not intended to be investing advice.
