The Australian dollar extends gains into third straight day and pressures 7 Aug high at 0.7243 (the highest since early Feb 2019) boosted by weaker dollar and barely affected by China’s anti-dumping probe into imports of Australian wine.
Bulls are on track to complete shallow 0.7243/0.7108 correction and resume larger uptrend, which extends into fifth consecutive month.
Break of key barriers at 0.7243/54 (7 Aug high/200WMA) is needed to spark fresh acceleration higher, however bulls might face strong headwinds here as daily studies are overbought and bullish momentum is fading.
Failure to break higher would keep the pair in extended consolidation range but bias is expected to remain with bulls as long as price action stays above correction low at 0.7108, reinforced by rising 30DMA.
Caution on break below these supports that would weaken near-term structure and risk deeper pullback.
Res: 0.7243, 0.7254, 0.7264, 0.7295
Sup: 0.7208, 0.7179, 0.7162, 0.7132
