Recovery from new 2 ½ year low at 0.7085 picks up and extends on Thursday, following previous day’s strong bullish acceleration.
Strong Australian jobs data in August, released overnight, helped fresh bulls to break above initial barrier at 0.7166 (falling 10 SMA) and currently pressuring pivotal barriers at 0.7198/0.7202 (Fibo 38.2% of 0.7381/0.7085 bear-leg / former low of 15 Aug).
Break and close above here would generate bullish signal for extension of recovery leg towards 0.7242 (falling 20SMA) and 0.7268 (Fibo 61.8% / falling 30SMA).
News about new round of trade talks between the US and China could be supportive for Aussie’s recovery.
Conversely, bearish signal could be expected if recovery rally fails to clear pivotal 0.7200 zone.
Res: 0.7202, 0.7242, 0.7268, 0.7311
Sup: 0.7173, 0.7138, 0.7085, 0.7022
