The Australian dollar advance further on Wednesday, extending steep recovery rally from 0.7020 (26 Oct spike low) and generates bullish signal on break above pivots at 0.7265/74 (100SMA / daily cloud top).
Bulls were additionally boosted by of US election results and attack resistance at 0.7284 (bear-trendline drawn off 0.7988, 11 Feb high / Fibo 23.6% of 0.8135/0.7020).
Daily MA’s returned to full bullish setup and support the advance along with strengthening bullish momentum, with close above daily cloud to add to bullish signals.
Bulls eye target at 0.7314 (26 Sep spike high), violation of which would open way for further recovery and expose targets at 0.7381 (21 Aug lower top) and 0.7446 (Fibo 38.2% of 0.8135/0.7020).
Overbought studies suggest bulls may take a breather and position for fresh advance.
Res: 0.7284, 0.7314, 0.7381, 0.7446
Sup: 0.7274, 0.7245, 0.7212, 0.7173
