The Aussie dollar hit three-month high on Thursday in extension of previous day’s strong rally, driven by higher commodity prices and ultra-hawkish comments regarding interest rates from former RBA board member on Thursday.
Fresh bullish extension dented former high of 30 Mar at 0.7379 and may extend gains on firm break higher, driven by bullish technical studies and sentiment.
The pair is currently riding on the fifth wave of five-wave cycle from 0.7328 (09 May low) which could travel to 0.7720, according to the wave principles and may extend towards key med-term barriers at 0.7749 (21 Mar peak) and 0.7778(08 Nov 2016 high).
Former high of 14 June at 0.7635, also session low, marks solid support, with ascending daily Tenkan-sen (currently at 0.7608) underpinning the action.
Res: 0.7680, 0.7700, 0.7720, 0.7749
Sup: 0.7651, 0.7635, 0.7608, 0.7588