The Aussie is attempting to sustain break above key barrier at 0.7700 which capped upside attempts in past two weeks.
Yesterday’s marginal close above 0.7700 barrier and today’s extension to fresh seven-weeks high at 0.7730, could be seen as strong bullish signals.
Repeated close above 0.7700 is needed to confirm break and open way towards next strong barriers at 0.7755/75 zone (Aug/Nov 2016 congestion tops).
Strong bullish setup of daily studies supports further upside action, however, rally may show signs of stall ahead of 0.7755/75 barriers as daily RSI / slow stochastic are approaching overbought zone.
Session low at 0.7690 marks initial support, with rising daily Tenkan-sen that tracks the uptrend (currently at 0.7667), expected to ideally contain dips.
Res: 0.7730, 0.7755, 0.7775, 0.7800
Sup: 0.7690, 0.7667, 0.7635, 0.7616