The Aussie pressures 0.7100 resistance zone (30SMA / daily Kijun-sen) following fresh bullish acceleration in Asian / European trading, driven by improved risk sentiment. Rising momentum helps but mixed setup of daily MA’s and south-heading stochastic weigh and limit advance for now. Bulls need sustained break above 0.7100/14 zone barriers (0.7114 is Fibo 38.2% of 0.7295/0.7003 fall) to signal further advance. Daily 30SMA marks next barrier at 0.7130, followed with more significant 100SMA (0.7160) and daily cloud top (0.7171) violation of which is expected to confirm bullish continuation. Expectations that the Fed will show further dovish stance and lower economic growth projection are already priced in and Aussie bulls will be looking for more signs that would include hints of rate cut, to weaken the greenback and open way for fresh advance of the Australian dollar. Conversely increased downside risk could be expected fresh weakness and close below daily cloud base (0.7050).
Res: 0.7100, 0.7114, 0.7130, 0.7160
Sup: 0.7070, 0.7050, 0.7041, 0.7003
