The Australian dollar hit the highest since Apr 2019 on Wednesday, in extension of Tuesday’s 1.6% advance (the biggest one-day gain since 1 Jun).
Strong bullish signal was generated on Tuesday’s close above 0.7064 (2020 high) and probe above 0.7132 (Fibo 61.8% larger 0.81350.5509 fall).
The advance was underpinned by rising equities and commodities that further boosted strong risk sentiment in the market.
Partial profit-taking before final break through 0.7132 pivot limits the advance for now, with dips expected to provide fresh buying opportunities, while holding above pivotal support at 0.7000 (psychological level reinforced by rising 10DMA).
Close above 0.7132 would provide fresh bullish signal for extension towards 0.7205 (17 Apr 2019 high) and 0.7262 (200WMA).
Res: 0.7132, 0.7167, 0.7205, 0.7262
Sup: 0.7100, 0.7064, 0.7018, 0.7000
