The Aussie dollar pulled back from fresh 26-month high at 0.8065 posted in Asia, but dips on profit-taking were so far contained at 0.8000 zone.
Daily close above former high at 0.7988 on Wednesday was bullish signal for continuation of broader uptrend which took a breather on 0.7988/0.7874 consolidation. Bulls need close above 0.8000 handle for confirmation and extension towards next target at 0.8161 (14 May 2015 high / 50% retracement of larger 0.9503/0.6825 downtrend).
However, downside remains vulnerable as overbought daily RSI and bearish divergence on slow stochastic warn of pullback. We look for today’s close, which would increase downside risk on close below 0.8000.
Res: 0.8065, 0.8100, 0.8161, 0.8200
Sup: 0.8000, 0.7988, 0.7956, 0.7923
