The Aussie extends recovery off 0.7054 base, boosted by fresh risk appetite on optimistic tone from trade talks.
Fresh extension higher cracked 0.7146 (Fibo 38.2% of 0.7295/0.7054) the lower boundary of strong resistance zone between 0.7146 and 0.7162 (consisting of Fibo barrier and converged 20/55/100SMA’s).
Daily SMA reversed and attempts to form bull-cross with 10SMA, with the action also being underpinned by rising momentum which attempts into positive territory.
On the other side, overbought stochastic warns that recovery may run out of steam at pivotal resistance zone.
Bullish near-term sentiment keeps focus at the upside, with today’s close above broken Fibo barrier (0.7146) needed to maintain positive bias. Sustained break above 0.7146/62 zone would signal recovery extension and expose next pivotal barrier at 0.7203 (Fibo 61.8% of 0.7295/0.7054). Deeper dips are expected to hold above converged 5/10SMA’s (0.7115) to keep alive hopes of recovery extension. Return and close below 5/10SMA’s would weaken near-term structure and increase risk of retesting 0.7054 base.
Res: 0.7162, 0.7174, 0.7203, 0.7245
Sup: 0.7132, 0.7115, 0.7079, 0.7054
