The Australian dollar regained traction and advanced towards multi-day range tops, following strong upside rejection on Thursday after the price spiked to 0.6933 but subsequently reversed and closed in the middle of the range.
Solid Chinese data, released overnight signal that the pressure on world’s second biggest economy start to fade that offered fresh support to Aussie.
However, near-term action continues to trade within extended range between 200DMA (0.6887) and 20DMA (0.6921), lacking stronger signal on mixed daily studies.
The pair looks for a catalyst that would generate fresh direction signal and drive the price out of the range.
Pivotal support is marked by 200DMA and firm break here would weaken near-term structure for further weakness. Strong bearish momentum on daily chart supports this scenario.
On the other side, sustained break above pivots at 0.699/21 (Fibo 38.2% of 0.7032/0.6849 / 20DMA) would generate initial bullish signal.
Res: 0.6921, 0.6940, 0.6962, 0.6988
Sup: 0.6887, 0.6877, 0.6849, 0.6835
