The Australian dollar maintains positive tone on Monday, inflated by renewed risk mode and on track to fully recover Friday’s fall. Larger bulls are consolidating under new high at 0.7295 (the highest since 31 Jan 2019) and more significant 200WMA (0.7251) which was cracked last week, but without clear break. Pullback was so far shallow and the action mainly stayed above 20DMA (0.7174) which marks pivotal point, holding above which is needed to keep bullish bias. Next supports lay at 0.7135 (30DMA) and 0.7108 (12 Aug low), guarding key level at 0.7085 (Fibo 38.2% of 0.6776/0.7275) break of which would generate stronger bearish signal. At the upside, 200WMA marks key barrier and sustained break would accelerate bulls. Flat daily momentum suggests extended consolidation, as traders look for fresh signals from Fed Powell’s speech in Jackson Hole symposium on Thursday.
Res: 0.7190, 0.7215, 0.7251, 0.7275
Sup: 0.7174, 0.7157, 0.7135, 0.7108
