The Aussie dollar benefited from fresh risk appetite on deal of US/China presidents to put trade conflict on hold and hit new four-month high at 0.7393. The pair started week with almost 70-pips gap higher and extended advance on fresh optimism that trade war could be avoided.
Positive sentiment is supported by bullish setup of daily techs and weekly bullish engulfing.
Fresh advance signals continuation of recovery leg from the base formed at 0.7050/40 zone, which was paused for three-week consolidation.
Bulls cracked barrier at 0.7381 (21 Aug high) and could extend towards next pivotal barrier at 0.7445 (Fibo 38.2% of 0.8135/0.7019 fall).
Overbought slow stochastic warns that bulls may take a breather before continuing, with supports at 0.7335 (16 Nov high) and 0.7320 (Fibo 38.2% of 0.7199/0.7393 upleg, expected to hold and keep fresh bulls intact.
Res: 0.7393, 0.7445, 0.7464, 0.7483
Sup: 0.7347, 0.7335, 0.7320, 0.7284
