Riding the Bullish Wave: AUD/USD's Remarkable Recovery Defies Consolidation Breakdown

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Hey fellow traders!

I wanted to share my excitement about the recent upward momentum in the AUD/USD pair and discuss our potential strategy moving forward. Despite some challenges faced by the pair, such as difficulties in maintaining its rally above 0.6680, there are promising factors to consider.

Firstly, the unexpected interest rate hike by the Reserve Bank of Australia (RBA) has triggered this impressive rally. Governor Philip Lowe's decision to raise the Official Cash Rate (OCR) by 25 basis points to 4.10% demonstrates the RBA's confidence in the Australian economy, despite lower-than-desired inflation levels.

Moreover, the narrowing policy divergence between the RBA and the Federal Reserve (Fed) has provided further support. While uncertainties surrounding the June monetary policy meeting by the Fed have influenced market sentiment, the AUD/USD pair remains resilient.

Another interesting development is the AUD/USD's sharp recovery, defying the breakdown from its consolidation range of 0.6563-0.6808 on a daily basis. Surprisingly, the Australian dollar has experienced minimal selling pressure, contributing to this notable rebound.

As we navigate these exciting market dynamics, I believe a trend-following strategy could be advantageous in capitalizing on the upward movement. Let's stay vigilant and capitalize on the opportunities presented by this bullish momentum.

Happy trading, everyone!