The Australian dollar extended strong recovery against its US counterpart, nearing 0.7500 on Monday.
Bullish acceleration was triggered on Friday on profit-taking and boosted by downbeat US NFP data which deflated the greenback. Strong bullish close on Friday that marked the biggest one-day gains since 15 Mar, left long bullish daily candle that underpinned fresh bulls.
Stronger than expected China’s Service PMI data, released on Monday and rising geopolitical tensions in the Middle East sparked fresh acceleration higher that broke above former high at 0.7475 and cracked 0.7482 barrier (Fibo 76.4% of 0.7517/0.7369 downleg), shifting focus towards key barriers at 0.7517/22 (23 May peak/weekly cloud top), reinforced by 200SMA at 0.7527.
Daily indicators show room for extension higher, however, hesitation at these barriers could be anticipated.
Broken converged daily Tenkan-sen/Kijun-sen lines offer solid support at 0.7443 which is expected to hold corrective dips.
Res: 0.7500, 0.7520, 0.7535, 0.7573
Sup: 0.7460, 0.7443, 0.7420, 0.7400
