The Aussie dollar probes breaks into daily cloud on Monday, supported by fresh risk appetite ahead of historical US/NK summit on Tuesday.
Repeated close below daily cloud on Thu/Fri was bearish signal, but pullback from 0.7676/73 tops (where main bear-trendline repeatedly capped upside attempts) was contained by rising 20SMA on Friday’s spike to 0.7560.
Strengthening momentum is supportive but falling daily cloud continues to weigh and keep the downside at risk.
Another close below cloud will be bearish signal and could risk retest of 20SMA (0.7567), break of which is needed to confirm reversal, as 20SMA is reinforced by Fibo 38.2% of 0.7412/0.7676 rally (0.7575).
Bullish scenario requires close in the clod and also close above falling 55 SMA to sideline immediate downside threats.
Res: 0.7607, 0.7621, 0.7658, 0.7676
Sup: 0.7588, 0.7567, 0.7547, 0.7513
