The Aussie fell in line with our bearish bias last week, thanks to stronger-than-expected CPI data from the US and the Middle East conflict. Yet despite the risk-off sentiment, the Aussie held above 63c last week and formed a bullish engulfing day on Monday.
A bullish engulfing candle also formed on the 4-hour candle, prices are back above the September low and are now considering a break above the monthly pivot.
Given the liquidity gap (LG) that formed during last week's decline, a break above last week's high assumes the LG could be filled if prices break higher.
The near-term bias remains bullish above the 4-hour candle low.