The Australian dollar cracked psychological 0.70 barrier on Friday, in extension of steep bullish acceleration this week (the pair is on track for weekly gains of nearly 5%). Bulls approach key barrier at 0.7032 (31Dec 2019 high) and break here would open way for extension of recovery of 2017/2020 bear-phase (0.8135/0.5509) towards its Fibo 61.8% retracement at 0.7132.
Probe above weekly cloud top (0.6969) adds to positive signals which require confirmation on weekly close above the cloud.
Bulls may face strong headwinds from 0.7000/32 resistance zone and may consolidate/correct before resuming as overbought daily studies and long upper shadows on Wed/Thu daily candles suggest. Traders await today’s US jobs data for fresh signals but eye next week’s RBA meeting and a batch of important Australian economic releases. Weekly cloud base (0.6853) marks solid support which is expected to limit potential dips and keep focus at the upside.
Res: 0.7000, 0.7012, 0.7032, 0.7082
Sup: 0.6930, 0.6904, 0.6881, 0.6853
