AUDUSD consolidates just under new 2 ½ month high on Monday after last Friday’s 0.8% gain completed uninterrupted eight-week rally.
Bulls cracked a double Fibo barrier at 0.7180 (Fibo 76.4% retracement of 0.7277/0.6865 / Fibo 161.8% expansion of the third wave of five-wave cycle from 0.6865, June 30 low) where stronger headwinds could be expected, as daily studies are overbought.
However, larger bulls remain firmly in play (bullish daily studies / favorable fundamentals) with consolidation / limited dips likely to precede fresh push higher.
Firm break of barriers at 0.7180 /0.7200 zone (Fibo / May 29 lower top) to signal bullish continuation and expose key barrier at 0.7277 (May 6 peak, the highest in four years).
Rising 10DMA and broken Fibo 61.8% (0.7100/20) should contain dips to keep larger bulls intact.
Traders focus on releases of RBA minutes (Tuesday), Australia’s July CPI / US July PCE (Wednesday) for fresh signals.
Res: 0.7180; 0.7200; 0.7222; 0.7277
Sup: 0.7156; 0.7120; 0.7100; 0.7071
