The Australian dollar rose on Thursday, inflated by rise in China’s exports and record rise in Australia’s trade surplus in March.
Fresh strength reached levels just ticks ahead of Tuesday’s high (0.6476), looking to break higher and signal an end of congestion that extends into fourth day.
The Aussie maintains bullish short-term tone, driven by risk mode and higher commodity prices, as the uptrend from 19 Mar low, also low of 2020 (0.5509) remains fully in play.
The downside is protected by rising 20DMA (0.6400) which tracks the rally for one month and bulls are expected to remain intact while the latter support holds.
Close above 0.6479 would generate fresh bullish signal for renewed attempts towards key barriers at 0.6541 (100DMA) and 0.6569 (30 Apr high).
Caution is required while the price action remains within current range (0.6372/0.6476) as the downside will remain vulnerable.
Break of 20DMA would put bulls on hold for deeper pullback.
Res: 0.6476, 0.6510, 0.6541, 0.6569
Sup: 0.6400, 0.6372, 0.6311, 0.6275
