AUDUSD extended rally for nearly two weeks and hit three-year high on Thursday (0.7093), before easing.
Weakening US dollar and Aussie tracking strong rise in precious metals, were mainly behind the latest rally (up over 6% since the move started on Jan 19).
Bulls broke and established above psychological 0.70 level, but faced strong headwinds on approach to 0.7100 resistance, as daily studies are overbought and overstretched 14-d momentum turned south.
Thursday’s red daily candle with long upper shadow adds to signals of upside rejection and warning of pullback, as the US dollar jumps after steep fall in past four days.
Loss of initial supports at 0.70 zone (psychological / near Fibo 23.6% of 0.6667/0.7093) unmasks 0.6930 (Fibo 38.2%), with stronger acceleration lower to find solid ground at 0.6900/0.6880 zone (round-figure / 50% retracement) and mark a healthy correction before larger bulls regain control.
Caution on potential loss of 0.6880 handle, which may trigger deeper pullback and sideline bulls.
Res: 0.7015; 0.7093; 0.7157; 0.7207
Sup: 0.6968; 0.6930; 0.6880; 0.6830
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