The Australian dollar cracked the base of falling and thickening daily cloud (0.6988), in extension of recovery rally from 0.6831 (18 June low) which paused on Tuesday and left long-legged Doji.
Fresh advance was sparked by rally of Kiwi dollar following the dovish hold of RBNZ, earlier today, in expected action of the central bank and from optimistic comments of top US officials about US/China trade deal.
Close in the daily cloud will provide fresh bullish signal for eventual attack at key barrier at 0.7022 (7 June high) that would also expose daily cloud top (0.7035).
Positive sentiment is boosted by rising bullish momentum, however, bulls may show hesitation under daily cloud base as stochastic is overbought and moves sideways.
Consolidation is likely to precede fresh advance and should ideally stay above 0.6949 (broken Fibo 61.8% barrier / rising 5SMA) to keep bulls intact.
Res: 0.6988, 0.7000, 0.7022, 0.7035
Sup: 0.6949, 0.6937, 0.6925, 0.6914
