AUDUSD extends its rally for the eleventh consecutive session

AUDUSD extends its steep uptrend for the eleventh consecutive session and remains on course for a second weekly advance, supported primarily by broad dollar weakness amid rising expectations for a Fed rate cut, while also maintaining a firm tone against major peers.

The pair hit a new 2 ½-month high on Friday and pierced key resistance at 0.6640 (200WMA / 76.4% retracement of the 0.6706/0.6421 downswing), where bullish momentum could start to face headwinds as daily indicators are overbought and profit-taking attempts emerge.

Traders now shift focus to the delayed US September PCE price index – a key Fed inflation gauge – which is expected to offer further guidance for policymakers ahead of next week’s meeting.

The technical backdrop remains strongly bullish, with multiple MA bull-crosses and firm positive momentum supporting the trend. Immediate downside should be cushioned above the 0.6600 region (broken 61.8% retracement / hourly higher low / hourly cloud top), while any deeper pullback is expected to hold above 0.6560 (daily cloud top / broken 50% retracement), keeping the correction healthy and providing renewed buying interest for a push toward 0.6706 (2025 peak from Sep 17).

Res: 0.6660; 0.6688; 0.6706; 0.6730
Sup: 0.6630; 0.6600; 0.6560; 0.6541