The Aussie cracked 0.7200 barrier on fresh bullish acceleration, sparked by better than expected Australian CPI (Q4 0.5% vs 0.4% f/c). The advance reversed the pullback of past two days and emerged above converged 100/55SMA’s (0.7171/81) which limited the action in past two weeks. Fresh bulls attack daily cloud top (0.7207), break of which is needed to neutralize downside risk and expose next key barrier at 0.7235 (11 Jan high). Rising bullish momentum supports the action, however, mixed signals from other indicators, suggest that the downside would remain vulnerable while cloud top caps. Broken MA’s now provide supports at 0.7181 (55SMA), 0.7171 (100SMA), with converged 10/20SMA’s (0.7157) marking lower pivot, loss of which would be bearish.
Res: 0.7207, 0.7235, 0.7263, 0.7298
Sup: 0.7181, 0.7171, 0.7157, 0.7124
