The Aussie advanced further in Asian trading on Monday, in extension of last Friday’s strong rally that generated positive signal on formation of bullish engulfing pattern on daily chart.
Bulls were also attracted with today’s twist of daily cloud (0.7207) but gains were so far capped here.
Stronger Chinese yuan and increased risk appetite helped bulls, which broke and closed above a cluster of daily MA’s (0.7125/70 zone) and improved near-term outlook.
Rising bullish momentum on daily chart underpins the advance, which eyes next pivotal barrier at 0.7235 (2019 high, posted on 19 Jan/near Fibo 76.4% of 0.7393/0.6706 descend). Broken daily MA’s now mark support zone which needs to hold and keep bulls in play.
Return and lose below 0.7215 (30SMA) would weaken near-term structure and risk of last Thu/Fri 0.7075/80 double-bottom.
Res: 0.7203, 0.7235, 0.7263, 0.7302
Sup: 0.7170, 0.7159, 0.7143, 0.7125
